Summary
Life insurance companies provide initial quotes based on their standard terms - two thirds of applicants find that they have to pay more than initially quoted. This article looks into why this is, and what you can do about it.
Life Insurance - 66% of applicants face loaded premiums
Author: Anna Richardson
- Why Should I Even Bother to Buy Life Insurance?
- The case for having life insurance
- If only they’d had critical illness insurance.
- This article illustrates the need for Critical Illness insurance in a rather stark way. If you do not have Critical Illness insurance, we recommend that you read it.
- If only they’d had critical illness insurance.
- This article illustrates the need for Critical Illness insurance in a rather stark way. If you do not have Critical Illness insurance, we recommend that you read it.
- Insurance Are you covered and don't realise it?
- It might be worth checking whether you are forking out for two different insurance policies that cover you for exactly the same thing. Selling duplicate insurance policies is, after all, how some companies make their money.
So why is this happening? Well, life insurance companies provide quotes based on the perfect person - which basically means you must be 45 or under and in excellent health, have no hereditary illness in the family, work in an office and want no more than £250,000 cover. If you fall outside these strict boundaries, you can expect delays, and expense. (life insurance)
When you request an initial quote, you only have to provide a few details, namely your age, sex and whether you smoke. The insurer calculates how long you are likely to live, and uses that prediction to provide a quotation. This is what is known as their "Standard Terms".
If you like the quote and want to apply, youll have to give them a lot more information. You can either fill the form out yourself or give the details over the phone, a service that many online insurance companies offer. It speeds up the process, and ensures that you dont miss any important details out. Failure to include a detail that later on turns out to be important could invalidate your claim. They will then send the completed form for you to check and sign, so you need to be 100% sure that you have not omitted any details.
The insurers then use the information on the application details to make a more detailed analysis of your health and lifestyle, to try and predict any future concerns. If you have health problems of your own, you will instantly( Cheap Home insurance / great uk articles ) face loaded premiums, but they also look at more insidious issues such as your weight, alcohol and nicotine intake. Also if your father died of a stroke, or your mother from breast cancer, this will have an impact on their assessment of you. (car insurance quotes)
Your lifestyle will also have a part to play. If you work in an industry where accidents happen, such as construction or farming, or if you have a dangerous hobby like paragliding or mountain climbing, your premiums will feel the heat. ( Car Insurance cover - smasher insurance )They will also ask if you regularly visit countries that have historically represented health risks for visitors, like Africa and parts of Asia. And even though the law doesnt allow discrimination against same sex relations, the insurance companies will invariably ask you to have a full medical examination before agreeing to insure you.
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