All of the insurance companies have different criteria on which an individual is expected to stand before availing the long-term insurance schemes. The insurance company considers these criteria for determining the total amount that should be paid by the buyer in premiums.
The term “High-risk candidates” stands for those people who have very less life expectancy. In other words, the high-risk candidates are those people who have an increased probability of death or disability due to different aspects of their lifestyle or health.
Although there are a lot of factors that decide whether a candidate is normal or a high-risk candidate but some common factors include pre-existing medical conditions of the candidate like heart disease, HIV, sports or any other occupation that are dangerous for the candidate and lifestyle habits of the candidate such as smoking or drinking alcohol.
Listed below are some of the important factors that pull the candidate at high risk regarding life insurance:
Candidates occupation and risks related to it
Occupations are determined based on the nature of the work and the level of risks related to it. According to the insurance companies, if a candidate is included in activities like construction, mining, fishing, agriculture, engineering, etc. then they will be called as having a high risk of death or accident and hence it results in a higher premium.
Although these rules are not applied on all of the candidates working in these sectors. The candidates who are at the higher post such as an administrator, manager, officer are said to have a low risk and they can ask their providers to review their premiums based on the reduced level of risk.
Bad and unhealthy lifestyle
Daily lifestyle also plays a vital role in governing whether a candidate is at high risk or completely risk-free. Smoking, heavy drinking or drug use can all be considered high by the insurance companies. Any lifestyle factors that come with an increased medical cost or a raised chance of disability or death can result in paying higher premiums.
There are many ways of finding whether a candidate is having a healthy or bad lifestyle such as by Medical testing, Blood tests, Body Mass Index(BMI) calculators, etc.
The health and age of the candidate
For finding the average health of a candidate the insurance company checks whether the candidate has any pre-existing medical conditions or not. Apart from this factor, the company also checks whether the candidate is undergoing any treatment or not. In case of any pre-existing medical record of the candidate, he or she must have to complete medical check-up for being eligible to apply. Age plays a big in getting an affordable policy. The older you are the costlier the policy will be. However, it is possible to get life insurance for seniors over 70 at lower cost if you can find the right provider.
Candidates involvement in different risky activities
The candidate may have different hobbies that are a little bit risky such as mountain biking, skydiving, river rafting, bungee jumping, etc. These high-risk hobbies are, in fact, distinct risk factors and many policies will flat-out discard specific pastimes. Although by providing an extra amount one may find a provider to do some arrangements for the candidate & it is very expensive.