There is a definite time when many of us begin to consider getting life insurance to protect family members and loved ones. It could be after the birth of a child or a catchy insurance commercial that changes your interest. When this time comes, the first thing most people do is get a quick quote online to understand their approximate rates. A more detailed evaluation is presented below. Some elements of this assessment are intuitive (age, health status, smoking, occupation, etc.). There are, however, some other surprising evaluation criteria that subscribers also consider. What…

1. driving history: Yes, your driving record is important, not only for your car insurance premiums, but also for your life insurance rates. If you were in a DUI accident in the recent past, you are likely to experience significantly higher quoted rates than someone with a clean driving record. Remember that minor violations are removed from your driving record after three years (for insurance purposes).
2. be happy: Having a history of depression can hijack your life insurance premiums, almost doubling them. Happy people experience fewer health problems and stress and therefore pose less of a risk to insurance companies.
3. policy date: The policy start date can sometimes be adjusted (also called a retroactive date), which means that in some cases you can benefit from lower premiums (based on your younger age; if you turned 50 this week but your policy rolls back to last month, for example) . Obviously, you will have to pay all premiums from the retroactive point of time, but you can benefit from a lower rate in the future.
4. Dangerous works (eg specialists, bomb squad members) may put your life at greater risk and therefore lead to higher insurance premiums. Do you think your job is dangerous?
5. payment frequency: Paying for a life insurance policy annually saves insurers administrative costs and rewards you with lower premiums than if you had paid for your insurance monthly. In this case, however, you’ll need to plan carefully because a high annual fee can create a significant hole in your household budget if you miss the annual premium.
6. Travel (to dangerous destinations): Some destinations are more dangerous than others and some are very dangerous (war zones, areas with a known history of kidnapping, etc.) Consult an insurance broker or agent to understand how your future plans may affect your insurance coverage. Your policy may be declined or you may obtain a life insurance policy, but it would explicitly exclude the time you are abroad. In some cases, a simplified issuance of a life insurance policy without medical expenses is a solution, since it does not ask questions about travel. However, it is important to know that a simplified issue policy is more expensive than a standard one and its coverage is generally limited to $50,000 – $300,000. You can test this by getting a simplified anonymous issue no medical life insurance quote through one of the many online insurance platforms.
7. Extreme sports): Being involved in extreme and/or dangerous sports, especially professionally, can affect your life insurance premiums (for example: skydiving, diving, diving). Just like getting insurance while traveling to dangerous places, you need to understand what cases are not covered by your life insurance policy.
8. private pilot licenses: This one generally falls into a category of dangerous hobbies: licensed pilots (private only) may experience higher insurance rates. When calculating insurance premiums, an insurer will consider both the age and experience of the pilot. This information may not be requested during the initial quoting process, but will be required during the subsequent detailed evaluation.
9. your citizenship: If you are not a Canadian citizen or resident, you will not be able to apply for a Canadian life insurance policy.
10. your income: Insurance companies can reject your life insurance policy if your household income falls below a particular threshold, usually $30,000. The reasoning behind this is that insurance does not stretch your budget beyond your capabilities. Keep in mind that you still need to talk to a broker to create a detailed future plan for insurance protection, and brokers who are also financial planners can help you assess your upcoming financial expenses to better manage your needs. It’s a good idea to check with your insurance broker if your income might be an issue before submitting your application. Remember that once you have been denied a life insurance application, it may affect your future applications, as some insurers include in their surveys “have you ever had a life insurance application denied?” Similar to a pilot’s license, this question may not be included in the initial quote questions, but your insurer will ask you later.

As you can see, many aspects outside of your health affect your life insurance quote and policy. You should remember that the underwriting rules (assessment of the application) are different between insurers and therefore it is advisable to work with an insurance broker who deals with numerous life insurance companies and can share their experience with you as you navigate. for this complex process.