Life Insurance Blog

Acquiring Insurance Coverage as a Risky Candidate

October 23rd, 2013 | Posted by Editor in Articles

Most everyone around the world finds comfort in insurance. It never hurts to have a greater peace of mind. The deeper issue is that in certain communities, coverage simply isn’t available. In others, it’s expensive and challenging to get. Whether we’re talking about people over in the U.S. scrambling to figure out the new Obamacare system or people here in Australia considering options from providers like Suncorp, the principle is the same: people want a security net.

For people living in places where adequate insurance options are available to them, like Australia, it’s important to understand that not every applicant is equally desirable for insurance companies. For those of you who may be high risk candidates when applying for certain policies, it’s important to go about the process in a particular way.

The tips below are intended to help you navigate the system with a heightened sense of not only your own situation, but also how those circumstances may be viewed by an insurance agent.

Exhaust your options

When you’re applying for coverage like life insurance in Australia, a provider will take many things into account. While it’s a common issue and nothing to be embarrassed about, most people have some sort of pre-existing condition. It’s part of life. Having said that, there are many situations like a diabetes diagnosis that can trigger higher policy rates when applicants are searching for a suitable plan.

Assuming you’re a high risk applicant (or at least higher than average), it’s critical that you literally exhaust all of the options available to you. While one life insurance or private health cover provider might view you as an extremely high risk applicant, another down the list may not. Similarly, half the battle is applying for the right policy. While you may be in a very expensive price category with one plan, it could be covering concerns that are not relevant to your particular situation. With insurance, you don’t want to pay for coverage you don’t need.
People get overwhelmed by insurance and they often end up settling for whichever policy is put in front of them. Life cover and other agreements of this nature are too big of a deal to settle on, especially when you’re a high risk person. There is certain coverage out there for everyone, and it just takes time to uncover it.

Highlight stability and responsibility in your life

When you’re getting assessed by an insurance provider, they’ll want to know all about your medical, family and personal history. This is a critical point in the journey, and while you should be honest as a potentially high risk applicant, you ought to clearly highlight any and all stability within the way you take care of yourself. If you have diabetes, what are you doing to help mitigate the situation? Have you been proactive since a diagnosis? If you are obese, have you been taking small steps to make it better? These are things you should be telling an agent and writing on your application.

An insurance provider, regardless of what sort, is your caretaker in a certain sense. Everyone feels more comfortable taking care of people that are contributing in any way that they can.

When assessing plans, view the policies themselves and the specific agents you’re working with as resources to help you get the coverage you need. Part of doing this is displaying and showcasing any and all positive habits you have that contribute toward a healthier and safer livelihood. Although you’re a high risk applicant, you can show that you have low risk character.

Improve what you are able to

The good thing about having a condition is that most of them commonly found around the planet are able to be maintained. Maybe not cured, but maintained. Similarly, there are things you can control as an applicant. Do you smoke? Do you drink alcohol in excess? These are two common habits that are major red flags when applying for cover. It’s imperative that you do your best to strive for anything that will help your cause in the long run.
Removing yourself from risky situations and tendencies naturally makes you a more desirable applicant. Many things in life you can’t control, but there are many you can.

Being healthy is arguably the highest priority for people and their families around the globe. Not everyone has access to coverage, and if you do, take advantage of it. Even if you’re currently a high risk applicant, there are many ways to put yourself in a better position and acquire the most effective plan for your needs.

Georgia Banks writes about family planning and life’s challenges.

This material is not intended to constitute personal advice, and must not be relied on as such. This information has been prepared without taking into account your objectives, financial circumstances or needs. Before making a decision based on this material, you should consider the appropriateness of this material having regard to your own objectives financial circumstances and needs. You should consider obtaining independent advice before making any decision.

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Arlene Chandler is a freelance writer who enjoys helping others sort through their personal finances. She currently writes about Life...