How Do Personal Circumstances Affect Your Life Insurance Cover?

The main component taken into account by life insurance providers when deciding your life insurance premium is your health status. Most life insurance India companies require the person requesting a life insurance policy to undergo a series of health checkups. If you are more prone to critical illnesses or your circumstances put you more at risk of death, then your premium payments are going to be higher as compared to average premium allocations.

To calculate the likelihood of risky health and the level of danger to life, the life insurance companies ask the policy taker to answer a series of questions related to health and personal circumstances. You must make sure to disclose all existing illnesses and health weaknesses while applying for a life insurance policy honestly. In the absence of correct disclosures the life insurance India companies can refuse to honor your policy when you most require it, i.e. in case of death or illness etc.

The regular premiums, i.e. the monthly payments for your life insurance cover can vary from person to person depending on their age, health fitness, medical history and life circumstances. Besides requesting a detailed health disclosure, the life insurance companies will take into account the occupational risks you are exposed to at high risk workplaces and also if you are involved in exiting hobbies and dangerous sports activities.

Higher occupational risk means higher insurance premium – if your workplace exposes you to higher risk of injury, terminal illnesses or early death, then your premium payouts are likely to be greater than average. Generally oil refinery workers employed offshore, people working in nuclear establishments, people out at sea on a naval ship or submarine, fishermen, pilots, the armed forces etc. are more susceptible to life and health risks. Even special police units and emergency workers may fall under the high risk category.
In case of members of the Armed Forces, the insurance premium tends to be quite high. But if a policy was issued before the policy holder was sent to a war zone increasing his life risk, then the insurance company cannot refuse a valid policy claim. But depending on different life insurance India companies, exclusions might be incorporated while purchasing a policy that may foresee such unexpected circumstances. You must read all the terms and conditions including any exclusions included in the insurance policy before signing the policy document.

Regularly involvement in dangerous hobbies like parachuting, mountaineering, deep sea diving and other extreme sports can affect the premium payouts on a life insurance policy. Frequent exposure to hazardous sports and hobbies can make you more susceptible to permanent disability or early death and the insurance companies are likely to take that into account. The life insurance India companies will generally review expertise, experience and qualifications for risky sports before arriving at the amount of risk you are exposed to during such activities. For example a diver participating in regular water shows will generally pay less premium when compared to someone diving with the dangerous white sharks.

All life insurance companies have different policies are value the same activity differently. Where some life insurance India company may refuse to issue a policy to people engaged in risky activities, others may issue a policy with exclusions incorporated while some may even agree to insure high risk individuals at higher premiums.

It is prudent to check your life insurance policy thoroughly to be aware of everything you are covered and not covered for. Also make sure to keep your insurance company updated on any changes to your life circumstances if they might have the possibility of affecting your insurance policy.