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Insurance Risks
Whether
you know it or not, you are a "risk" in the eyes of whole life insurance
companies. If you are like most people — you're not an Olympic
athlete but you don't have serious health problems — then
you are probably what is called a "standard risk." Standard
risk individuals qualify for an insurance company's standard
rates. If you are in better than average health though, you
could be a "preferred risk" and qualify for lower, preferred
rates.
Can
you change your rating from standard to preferred and get
lower rates?
Yes and
no. Some things about your health you can't change. But there
are lifestyle choices you can make: quitting smoking, for
example, or taking steps to lower your cholesterol or get
your weight down so that you'll become a better risk and improve
your rating. Each company has its own standards but, if you
demonstrate improvements for a year or two, most will consider
that evidence of permanent improvement and will consider you
for preferred status.
Here
are some of the factors whole life insurance companies consider when
categorizing someone as preferred risk. But keep in mind that
definitions of standard and preferred risks vary from company
to company:
- No personal history of cardiovascular disease, stroke, diabetes (insulin or non-insulin dependent), cancer or alcohol/drug dependency.
- No family history of cardiovascular disease prior to age 60, including parents and siblings.
- Not flying as a private pilot, student pilot or participating in aviation during the two years prior to applying for your policy.
- Having an average, untreated blood pressure that doesn't exceed 150/90 and having no history of hypertension under treatment. Some companies will allow treatment if under control for two years if your blood pressure doesn't exceed 140/90.
- Having a cholesterol level that doesn't exceed 260 (250 for tobacco users).
- Having a cholesterol / HDL ratio that doesn't exceed 7 (6 for tobacco users).
- Weight that doesn't exceed the following limits (though slightly higher weights may be allowed if you don't have a problem in any of the areas listed above):
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