Examples of why people get life insurance are plentiful. This is an insurance policy an individual can get to cover themselves or another when the case of death arises. These types of insurance are used to ensure financial stability to the ones still living.
Married couples often choose this type of insurance allowing the significant other to become the beneficiary. This means all funeral costs, and any other expenses incurred to cause a death will be paid at once.
While calculations are prepared based on several factors. A young person will not pay the amount for a premium, that and elderly person will be quoted.
If you are a senior citizen, still working as a steel fabricator on high rise buildings, that smokes cigarettes, and drink alcohol constantly. You will probably not be able to afford life insurance. This is when the described person comes to a crossroad. Either change the lifestyle or choose another alternative to take care of those that will be left behind.
After an insurance agent gathers all required information to perform an a quote. The applicant will be asked to visit a family doctor for a full physical. This is done, to ensure the person is in good health at the time of purchase. This increases the results for an accurate quote.
If your lifestyle consists of knitting, cooking, reading, etc. You will be determined as a low risk lifestyle and a quote will be low. Some high risk examples include: parasailing, rattlesnake hunting, or recreational drug usage. The higher the risk, the higher the price of insurance, and vice versa.
The agent providing a quote, will ask how often you do things that are defined as risk assessments. For example, a daily “happy hour” attendant will be a higher risk, than a social drinker.
Nicotine and alcohol in excessive amounts have raised the death rate statistics and play a big role in the price of life insurance.
While planning for the future, take all these examples into consideration. The price of a life insurance policy will lever on this information.
Graham McKenzie is the content Syndication Manager at insurance123.co.zaSouth Africa’s leading Life Insurance information portal
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