What is Impaired Risk
If you own a home, an automobile or a piece of property, you may be eligible for impaired life insurance. This type of insurance protects you and your family from high expenses if you are injured due to another person's negligence. The premiums for this type of insurance are usually affordable, depending on your age and health at the time of application. If you already have a policy, you may still want to use an agent who specializes in impaired risk life insurance to negotiate a new rate. Impaired life insurers typically have several carriers who offer life coverage to individuals with pre-existing medical conditions and can assist you in finding the best coverage for your budget.
To determine whether you meet the impaired risk life insurance guidelines, contact one of your current insurers. You may need to provide them with information, such as a copy of your medical history. In general, you must be of legal age, at least 18 years old, and not have had a policy in place for more than three months. You must also have a physical ailment that can't be reversed, such as cancer, diabetes or a heart condition. Impaired life insurance applies to all of these categories.
Your health impairments will be investigated by the insurer to determine if you fit within the impaired risk life insurance guidelines. Your impairment and the health problems that accompany it will then be compared with your life expectancy. If your life expectancy is low, your premiums will be higher. Conversely, if you meet the guidelines and your life expectancy is high, your rates will be lower.
There are several factors considered when setting the maximum amounts that will be charged on an impaired risk life insurance policy. Egg Insurance is based on many factors, including the health of the applicant, their marital status and whether they have a dependent such as a child or another family member. Premiums are usually higher for married people over 30 and for those who have dependents.
Many carriers offer a variety of options to protect the cost of the premium. Some carriers offer the option of increasing your coverage after a certain period of time. These increase premiums can be added gradually to your coverage. In addition, some carriers may charge a per-day fee for increased coverage. With a myriad of options available, you can tailor the coverage to fit your needs.
There are two basic classifications of risk for insurance companies. There are risks that are considered high risk by insurance companies. These are individuals who have certain chronic conditions, or who have a history of high alcohol or drug usage. Examples include those who smoke, use steroids, or are overweight. Other examples of substandard risks are those who have had poor personal financial management decisions in the past, such as bankruptcy, foreclosure, poor investment choices, or even being sued by a previous employer for discrimination.
Substandard risk is not necessarily synonymous with having an impaired life history. If the carrier feels your risk of loss is elevated, they may add additional coverage to your life insurance policy. However, carriers tend not to consider individuals who fall into this subgroup as high risk. This is because other insurance companies may underwrite your policy, but since you are considered a substandard risk by the carrier, they are not obligated to do so. When purchasing insurance, you should understand what your risk factors are so that you can tailor your policy to suit your needs.
Purchasing your own independent agent-based life insurance policy from a carrier that underwrites policies underwriters in their own network can provide you with more personalized service. Independent agents, who have extensive experience dealing with these sub-classifieds, are best able to provide you with the information needed to determine whether your level of risk warrants these extra fees. Once you know what level of risk you fall under, you will be able to choose the coverage options that are best suited to meet your needs. For more information on finding the best rates on these types of policies, contact an independent agent today.
