Hey listen? No-one wants anything but the very best for you, but of course we all know our time on this earth is limited. Even Barack knows he’ll have to leave office in time right? But if we have families then it makes sound financial sense to take out life insurance.
But there are times when for whatever reason we won’t be able to get cover. It may because we’re in poor health to begin in which case you just might not bother. As George W once said: “you’re either with us or against us”. So be aware some insurance companies do insure those not in the best of health. But how do companies determine what cover you may be afforded. Tell you what let’s look at it from their perspective?
This process of giving you the once over is the underwriting process! Every insurance company has a different way of doing this. Generally though the process comes out of the same concept. What are the risks in insuring you and how great are those risks? Well they will almost certainly look at your lifestyle, occupation and income. You can add to that:
- Dread it! – your age!
- Marital Status
- Height and Weight
- Dangerous Hobbies or pastimes
- The purpose of the Insurance
- Yes – do you have a history of smoking
- History of health in your family
What else will happen?
Like it or not your medical records will be passed over to the insurance company and you’ll undergo a medical. If you suffer from an illness or are disabled then they’ll ask for a doctor of your own choice to carry out an examination.
And If I’m not sure where I stand health wise?
There’s no need to worry as you can use the services of an impaired health specialist. They know all about the underwriting process and can help point you in the right direction in order to get the correct insurance. These experts can sometimes negotiate with the insurer to get you the best deal possible. They can frankly, present your case in the most enlightening way
So what happens next?
Insurance companies will look closely at all the information you provide and then give you a rating. This is based upon the risk you give them and the probability of having to make a payout within a certain timeframe. It’s really all about crunching the numbers but this all goes into the mix before they decide what premium you should pay based on this information. The truth is some companies can be quite aggressive in their approach and other companies will be a bit more relaxed.
Are there other things I can do to help?
Yes there are and one of them is to talk to your own doctor. In actual fact you should really alert to the fact an insurance company will be asking to see your medical records. His or her opinion can have a great bearing on insurance especially if you already have health problems. Try and live a good lifestyle as this will almost certainly help you in the long run anyway apart from simply getting life insurance cover. Timing can also be a huge factor if you can manage things that way. What you should really do is carry out lots of research and shop around as much as possible. Life insurance is like any other product. Get value for money! And just a note to say if you do have health issues then re-insurance is available whereby another insurance company shares the cost of cover. There’s much information on this online and it can help alleviate your worries knowing there are companies out there who can help in this situation.
Remember, in the case of life insurance you are planning ahead and taking care of your family in the best way you can. If anything should happen to you then you know they’ll be looked after for the long term!