Life insurance premiums are premised upon a number of things including average lifespan and whether or not a person is deemed to be high risk. Life insurance companies classify certain people as a riskier proposition then others for a variety of reasons.
It is important to know whether or not you are likely to be classified as high risk by life insurance companies before you begin amassing life insurance quotes, as it will prepare you for the possibility of higher premiums.
A number of insurance providers are beginning to recognise this fact and are offering high risk life insurance policies or offering more flexibility when it comes to customers who do not accord to average health and life expectancy.
The main criteria for someone being classified as a high risk by an insurance provider are usually that:
- They are a smoker (to be classified as a non-smoker an individual must be nicotine free for 12 months)
- They have an occupation with above average levels of danger such as being n the armed forces, working at great heights, being employed by the oil and gas industry or being a fisherman
- They have underlying health problems that have the potential to lead to complications down the line
- They regularly take part in sports or hobbies which are considered to have implicit risks such as sky diving or cage fighting
Some insurance companies have more relaxed criteria in offering terms on high risk life insurance which could result in significant cost savings.