Users of marijuana applying for life insurance will no longer be treated as smokers by several life insurance companies in Canada. These include Sun Life, BMO Insurance and Assumption Life, although their policies regarding the classification of marijuana usage differs.
When you're applying for life insurance, an underwriter will assess your risk level and determine whether or not you're eligible. The underwriting requirements that you have to go through depends on your age and amount of coverage, but one of the them that most applicants have to undergo is the paramedical examination. The purpose of the paramedical is for the underwriter to gain insight into your current health status. For example, a blood test will reveal blood sugar, cholesterol and other lipid levels. Results that are within the averages would reflect positively upon the applicant, while results that lie outside the range would be a cause for concern.
In an earlier post, we discussed the different underwriting decisions that can be handed out to applicants of life insurance. One of the outcomes is an approval at preferred rates. As the name implies, these policies have a lower premium attached to them, rewarding the applicant for a healthy lifestyle. Qualifying for preferred underwriting is one of the most effective saving methods for life insurance, although it is also one of the hardest to achieve. How exactly is eligibility for preferred underwriting determined? This post will review some of the criteria that insurance companies look at when applying preferred rates.
Whenever you apply for a life or health insurance policy, you have to sign the application form indicating that you allow the insurance company to obtain information from the Medical Information Bureau (MIB). What is the MIB? How does it have your medical history? Is your information safe with it? Continue reading for answers to these and other related questions.
Did you know that besides your health and medical history, life insurance premiums are also dependent on lifestyle activities? These activities, termed avocations, are hobbies that people engage in with their spare time. In the rest of this post, we will discuss what constitutes a dangerous avocation and how participating in it will affect your life insurance premiums.
Have you ever been given a quote for life insurance, applied, and was approved with a higher price? If this has happened to you, it means that your policy was rated and you were classified as a substandard risk. What is a life insurance rating? Will the rating last for the life of the policy? Should you even accept the policy? These are questions that only you could answer, but by reading this post, you should have a better understanding of life insurance ratings and your choices.
There are many reasons to buy life insurance: for final expenses, to provide and income, to leave an inheritance, and more. But life insurance can be a very costly commodity. It has to be for the insurance company to be viable. You are purchasing hundreds of thousands and in some cases, over a million dollars of coverage, in exchange for (give or take) one hundred dollars a month. While the cost may seem astronomical especially since your household already has other fixed living expenses, life insurance is a must if you have a family dependent on you. Since the cost is unavoidable, the next best thing is to find ways to reduce the cost. Here are 13 tips to help you save on life insurance.
When you apply for a life, disability, critical illness or long-term care insurance policy, the insurance company that you're applying to will want to know as much detail as they can about you. They will need to assess your risk in a process known as underwriting. Having an abundance of medical, financial, occupational and lifestyle information about you will help the underwriter determine if you are eligible for insurance, and if so, at what rate. Applicants considered high risk will have their policy rated, while applicants with lower than average risk may be rewarded with a preferred rate.
If you've never applied for life insurance before and are considering it now, you should know the steps that are taken from the moment you start the life insurance application process to the day you receive your policy. Due to the business practices of different insurance companies in Canada, your experience may be different from the steps outlined in this post. This post should give you a general idea of what to expect when applying for life insurance, including the time frame, types of questions asked on the application form, and other information obtained by the underwriter.
Life insurance underwriting decisions affect if you're eligible for life insurance and how much you will pay for it. Your life insurance application can be approved at standard rates, at preferred rates, at a higher premium. It can also be declined or postponed until a later date. In this post, I'll let you know how to deal with each underwriting decision.