Ten Unusual Factors That Can Impact Your Life Insurance Quotes

Many of us reach a point in our lives when we start to think about life insurance. This is the moment that protects loved ones and family members. You might be interested in an insurance commercial or after your child is born. Most people will get an online quote in order to determine their approximate rates when this happens. The detailed assessment is done after that. Some elements of the assessment are obvious (age, smoking status and occupation). Underwriters may also take into account other criteria. These include…

  1. Driving Record: Your driving record is important, not only for auto insurance premiums, but also for life insurance rates. A DUI conviction in the past will result in significantly higher rates than someone with a clean driving record. Keep in mind that minor offenses are removed from your driving record after three consecutive years (for insurance purposes).
  2. Be happy: A history of depression could cause you to pay twice as much for life insurance. Insurance companies are less likely to insure happy people because they have a lower risk of stress and health problems.
  3. Policy Date – The policy’s start date can sometimes be adjusted (also known as backdating). This means that you may get lower premiums depending on your age. For example, if you turn 50 this week, you could backdate your policy to last year. You will have to pay all premiums beginning at the backdated date, but you may be able to benefit from a lower rate moving forward.
  4. Dangerous jobs (e.g. Stuntmen, bomb squad members) can increase your risk of death and lead to higher insurance premiums. Are you concerned about your job?
  5. Monthly payment: An annual policy saves the insurers administrative expenses and rewards you with lower premiums. You should plan well in this instance, as an annual premium can cause a serious hole in your household budget.
  6. Travelling to dangerous destinations: There are some destinations that are more dangerous than others, and some are extremely dangerous (war zones, areas where kidnappings are a common occurrence, etc.). Talk to your agent or an insurance broker about how your future plans might impact your insurance coverage. You might lose your policy or be eligible for a life insurance policy. However, it would not cover time spent abroad. A simplified issue no medical insurance policy, which does not ask about travel questions, can be a viable option in certain cases. A simplified issue policy will typically cover $50,000-300,000. It is usually more expensive than a regular one. This can be checked by requesting a quote anonymously on one of the many insurance online platforms.
  7. Extreme Sports: Being involved with extreme or dangerous sports, especially professionally can affect your life insurance premiums (e.g. skydiving, cliff diving, and scuba diving). Similar to getting insurance when you travel to dangerous places, it is important to know which situations are not covered by your insurance policy.
  8. Private pilot license: This one falls under a category of dangerous hobbies. Licenced pilots (only private), might experience higher insurance rates. In order to calculate insurance premiums, the insurer will take into account both the pilot’s experience and age. These details will not be asked during the initial quote process but will be needed during the detailed assessment.
  9. Your citizenship – If you are not a Canadian citizen, resident or citizen, you will be unable to apply for Canadian life insurance policies.
  10. Your income Insurance companies may decline to insure your life insurance policy if you earn less than a certain threshold, usually $30,000. This is to ensure that insurance doesn’t exceed your budget. To create a plan for your future insurance protection, you should speak to a broker. Financial planners can also help you to manage your financial needs. Before submitting an application, it’s a good idea that you check with your broker to see if income is an issue. It is possible that your life insurance application will be denied. Insurers often ask you, “Have you ever been declined for life insurance?” Similar to a pilot’s license, this question may not be included in the initial quote questions but will be later asked by your insurer.

You can see that many factors other than your health have an impact on your life insurance policy and quote. Remember that underwriting rules (application assessments) vary between insurers. It is important to consult an insurance broker who has experience with many life insurance companies. This will allow you to share your knowledge and help you navigate this complicated process.

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