What are the factors that determine your insurability?

What are the factors that determine your insurability?


Buying insurance to protect your life and the lives of those you love can help prevent financial hardship following a tragic event causing disability or death. But whoever wants it is not guaranteed, and above all, not always at the price you imagine. How to estimate the insurability of a person and what factors could impact on the premium payable?

Purchasing life insurance: the steps.

To put it simply, the entry into force of life insurance requires a few conditions:

You must complete an insurance application with a financial security advisor declaring the insurability of the person you want to guarantee;

After studying your request, the insurer can accept your proposal directly or inform you of its changes in a document attached to the insurance contract. These can relate to the duration, the amount of the compensation or any other decisive point. It is then up to you to decide whether you want to continue or not. Without this additional document, you can avail yourself of all the requirements issued in the main contract;

Payment of the first premium;

In the meantime, no incident should affect the insurability of the person.

Insurability: definition

Insurability is the ability of a person to meet all the conditions required by insurance companies to agree to cover it. Several risk factors influencing the amount of the contribution are taken into account, in particular:

    Age:
    Life insurance can be purchased at any age, but the earlier the better, because the older you get, the less likely you are to be insured at a low price. Thus, the requirements differ depending on whether it is a child or a person over the age of 50 who will have to undergo a medical examination and submit to certain restrictions such as, among others, the risk of increased blood pressure. contribution over the years.
    Gender:
    Typically, a man pays up to 30% more than a woman on the insurance policy because of their shorter life expectancy.
    The job:
    The more dangerous the job (working at height, with sharp machines, in the construction sector, on the road, etc.), the more the premium to be paid increases.
    Place of residence:
    It may seem unusual, but even in Quebec life expectancy can vary from region to region and insurance companies take this into account in their calculations.
    Health status :
    A healthy person can easily get cheaper insurance, while those who are not so fortunate have to pay more premium. Some people with uninsurable risk illnesses such as a history of cancer or stroke are sometimes even denied insurance. It is therefore better to take out a life insurance policy when you are still in great shape.
    The tobacco :
    Tobacco use can double the amount to be contributed as it significantly reduces life expectancy. If you smoke after taking out the insurance contract, the premium as a non-smoker will not change. On the other hand, if during the smoking contract, you stop smoking for more than 12 months, you can renegotiate your premium.
    The alcohol :
    Alcoholism problems can affect insurability.
    Doping products:
    People who use non-prescribed drugs are likely to pay much more depending on the nature of the drugs, but also on how much and for how long.
    The sport :
    An insured person practicing an extreme sport such as parachuting, mountain climbing or motor sport, on a regular basis, must take out insurance commensurate with the danger to which he is exposed. On the other hand, if he does exercise to keep in shape while still agreeing to eat healthy, the premium could be reduced.

In the end, the amount of the contribution can therefore vary considerably between two people of the same age depending on their lifestyle. Unless they suffer from an advanced disease, a person therefore remains insurable for a price defined by their quality of life.