Underwriters determine risk by predicting how likely your policy would be to pay out. The more likely your policy is to pay out, the less likely you are to be accepted for life insurance, or the more expensive it could be. The following details about you are all factored in in your underwriter's assessment:
- Age: People past a certain age may pay more for their life insurance and their application for life insurance may be denied altogether by some insurers.
- Gender: Women usually pay less for their life insurance policies, because statistically they live longer.
- Job : If the underwriter considers an applicant's job dangerous, he or she will also probably have to pay more.
- BMI: (Body Mass Index) Overweight people may have high cholesterol that could affect their general health, thereby making them more expensive to insure.
- Habits: Smokers pay more for their life insurance. A smoker is someone who has had any tobacco products in the last 12 months, even if it's not a regular thing. Drug abusers or alcoholics may be refused cover, or will have to pay more for it.
- Hobbies: Participating in an extreme or dangerous sport can affect your life insurance premiums. The underwriter will analyze the risk of the sport and decide whether the insurance company can offer you a policy. Sports such as boxing, mountaineering, cave diving and anything to do with flying (except in a passenger aircraft) is considered an extreme sport.
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