In getting a more affordable life insurance coverage, we’ve always advised high risk people to change their life style and become less risky to insure. Unfortunately, this advice as not always been taken. Does that mean there is no way for these high risk individuals to get more affordable rates? Of course you can. Let’s see a few ways to achieve this.
It has become evident that various insurers have their areas of specialty. Some insurers have particular experience in certain areas and therefore understand the intricacies involved in that particular area.
We know that smokers, drinkers, people involved in hazardous sports are high risk candidates as far as insurers are concerned. Lets now look at this logic. If a smoker who smokes a stick a day were to get a life insurance policy, wouldn’t it be better for him/her to get policy from an insurer who is experienced in dealing with smokers who would understand that his/her risk level is not as high as a one pack a day smoker as against going to an insurer who doesn’t understand these details who would just classify him/her as a smoker and require the same rates from them?
On the other hand, if a chain smoker wants to get a life insurer policy, would it not be better for him/her to get it from an insurer who is not so experienced in this area who would not bother to ask him/her further details about their smoking habit but just classify him/her as a smoker and charge a plat rate that applies?
I’m sure you are beginning to understand the loop hole we are trying to capitalize on? Everyone needs life insurance coverage at an affordable rate.
Before taking up a policy, you would obviously need to understand the expertise of the insurer to know if it would favor your profile. you would also need to know exactly what level of coverage you need. A good way to do this is to use a life insurance calculator so you can know what level of coverage would be adequate for you.