Software professional Vipul Agarwal and his wife recently had their first child. Vipul is looking for insurance with Rs 20 lakh coverage and critical illness rider.
During process, insurance company asked for his lifestyle details, the disease history of his family, medical reports, etc. There are many factors which leads to increase in risk on part of insurance companies. This has direct impact on insurance premium. Let’s see which these factors are.
1. Smoking and tobacco habits: Tobacco consumption increases the risk of death; insurance companies are concerned about your tobacco consumption and smoking habits. This has impact on policy decision and insurance premium calculation.
2. Alcohol consumption: Binge drinking could cause heart and liver problems. The insurance premium is high for those with regular drinking habits. And at times your application may be rejected, based on the results of your medical tests.
3. Lifestyle: Your stress level is high while at work or home has significant impact on your health. Insurance companies understand this to make policy and premium decision.
4. History of disease in the family: Some diseases, like heart problem, blood pressure, diabetes, etc -- may be genetic. Insurance companies use medical test reports to analyse your health and underwrite the policy.
Insurance companies usually maintain a statistical record of all the diseases and lifestyle-related habits mentioned above. They use this data to determine the risk degree for a given applicant’s profile and the premium. Of course, the company accepts or rejects an application based on this data.
A sample response given by an insurance company: You are a high risk profile for insurance because you are a habitual smoker with a marketing job and there is cancer disease in your family history.
Warning: You may get an insurance policy but your claim may get rejected, later, if the information you provided in your application proves is incorrect. So, always disclose true and important information to the insurance company.
During process, insurance company asked for his lifestyle details, the disease history of his family, medical reports, etc. There are many factors which leads to increase in risk on part of insurance companies. This has direct impact on insurance premium. Let’s see which these factors are.
1. Smoking and tobacco habits: Tobacco consumption increases the risk of death; insurance companies are concerned about your tobacco consumption and smoking habits. This has impact on policy decision and insurance premium calculation.
2. Alcohol consumption: Binge drinking could cause heart and liver problems. The insurance premium is high for those with regular drinking habits. And at times your application may be rejected, based on the results of your medical tests.
3. Lifestyle: Your stress level is high while at work or home has significant impact on your health. Insurance companies understand this to make policy and premium decision.
4. History of disease in the family: Some diseases, like heart problem, blood pressure, diabetes, etc -- may be genetic. Insurance companies use medical test reports to analyse your health and underwrite the policy.
Insurance companies usually maintain a statistical record of all the diseases and lifestyle-related habits mentioned above. They use this data to determine the risk degree for a given applicant’s profile and the premium. Of course, the company accepts or rejects an application based on this data.
A sample response given by an insurance company: You are a high risk profile for insurance because you are a habitual smoker with a marketing job and there is cancer disease in your family history.
Warning: You may get an insurance policy but your claim may get rejected, later, if the information you provided in your application proves is incorrect. So, always disclose true and important information to the insurance company.
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