If you’ve struggled to find insurance policies that align with your needs, you’ve been quoted premiums that seem far too high, or you’ve had difficulties with life insurance comparison, it’s worth knowing what insurers are looking for when you apply. To help guide you when you take out or amend your next life insurance policy, let’s take a look at insurance from their perspective. Knowing precisely what they are looking for can help you gain a well-rounded understanding when it comes to updating your policies and comparing premiums.
Age
Age is something that heavily influences a life insurance quote. Of course, the younger you are, the more likely you are to stick around for, so it makes sense that younger customers are offered much better premiums and comprehensive coverage. This is why it is better to purchase a life insurance policy while you pose less risk to your insurer. However, it is important to have an idea of your financial aspirations to ensure your coverage will support you in times of need.
Gender
In many parts of the world, insurance providers consider gender when calculating a quote. Statistically, women have a longer life expectancy than men, making them much better candidates for a policy, often resulting in them getting lower premiums and better coverage. Unfortunately, this is out of our control, but purchasing a policy sooner rather than later can help eradicate this variable.
Medical History
Life insurance providers are likely to ask for your full medical history when making a decision about your premiums and coverage. They want to identify any areas that may pose a risk to your health in the future. They may ask for specific information regarding your health, or they may want you to undergo a full medical examination. It is crucial to be completely honest regarding your health, as it can impact decisions when you need to make a claim.
Lifestyle
To get an accurate quote and cover yourself when you need to make a claim, insurance providers also like to know as much about your lifestyle as possible. They want to know about any increased risk factors when deciding on your policy. This can range from drinking and smoking to dangerous hobbies, such as skydiving, motorsports, or snowboarding. This is another area where nothing should be left out. Remember, missing any crucial information when applying for a life insurance policy can make it difficult or impossible to claim in the future.
Family History
They also want to see if there is a risk of you developing or suffering from any genetic conditions that have been passed down through your family. If your family has a history of heart disease, cancer, strokes, or neurological disorders, it is likely your premiums will be higher or your coverage weaker.
Occupation
All jobs carry a certain level of risk, so an insurer needs to know if this is something they should be concerned about. They want to assess what specific risks you face at work. Some people might put themselves in physical danger on a regular basis, while others might work in a demanding, high-stress environment. Whatever the risks of your job, it is essential to disclose them before taking out a policy.
Finances
While your finances aren’t going to impact your premiums, it is something insurers want to look at. For most, a higher income comes with higher financial obligations. If you are in this category, you will likely need a significant benefit amount. The benefit amount of a life insurance policy will directly affect its cost, so insurers like to be aware of what you want compared to what you actually need.
