LIFE INSURANCE: HOW DO ACTUARIES DEFINE RISKY HABITS?

When shopping for life insurance Philippines this 2021, it’s safe to say we’re all seeking the best value for our investment. We want to get the most coverage for the lowest price. While comparing life insurance quotes across insurers is one of the best ways to secure affordable pricing, there are many factors at play. This 2021 some of these factors are in your control and others aren’t. 

If you’re in the market for medically underwritten term life insurance, the premium pricing is personalized to you. This means an underwriting platform is looking at you and only you to offer you the most affordable rate investment available based on your lifestyle and health history. 

So what are those activities, and how often do you have to engage in them to be considered “risky”? And how does that impact your coverage? Also, if you want to go skydiving and you want reasonably priced life insurance, what should you do? Actuaries do their best to perform a risk assessment for your investment and calculate the probability of your untimely demise and charge you accordingly in terms of insurance risk.

When assessing your survival prospects, insurers consider a range of easily understood factors like age and health, along with the murkier concept of whether you engage in “dangerous activities,” which you might have noticed when applying for a term life insurance policy. Here are some of the things that life insurance companies define as risky habits this 2021:

Tobacco use

It’s no secret, but tobacco is terrible for your health, and it not only harms your lungs but about every organ in your body that can lead to premature death. Because of this insurance companies face a much higher risk with tobacco users. 

If you are a tobacco user and you’re thinking about quitting and applying for term life insurance, it’s important to know that most insurance companies require that you be tobacco-free for a certain amount of time before they will offer you a non-smoking rate. 

Driving or criminal records

One way they can determine your risk is by looking at your driving records. For example, if your driving record includes multiple, at-fault collisions over the past few years or significant speeding infractions, it may cause a rate increase. If it’s been more than three years since your last accident, your driving record is less likely to have an impact on your premium amount. Additionally, a criminal record may impact your eligibility for several reasons. It can indicate a tendency toward riskier behavior and incarceration can cause poor health and premature death.

We hope that this cleared things out for you! But worry not! Even if you are still unfamiliar with the life insurance risk, we know that a legitimate life insurance company can help you through your journey of a good investment. Manila Bankers Life Insurance Corporation in the Philippines is equipped with helpful, kind, and patient insurance agents that can communicate well with you for you to fully understand your coverage.