Preferred Life Insurance – What is it, how do I qualify?

If you are reading this and want to learn more about preferred life insurance the chances are you are in good shape and lead a healthy lifestyle. preferred life insurance for the ultra healthyLife insurance companies rate customers by how likely they are to die at a younger age using statistics. Standard is the most common rate. Preferred rate is achieved only by a select few.

At the time you apply for life insurance you can ask to be assessed for preferred rates and will typically undergo a slightly more detailed medical exam. If you meet the insurance companies criteria you will be quoted a lower rate for your life insurance.

What to avoid

Unscrupulous life insurance agents have been known to quote ultra-healthy or preferred rates without even meeting the person, thus making their rates look artificially attractive. They do this in the full knowledge that most people do not qualify for ultra healthy rates,  in the hope they can convince you to buy life insurance at their standard rate.

How do I qualify?

In order to qualify for preferred rates you must be in excellent overall health and cannot use any tobacco products. You cannot have a history of drug or alcohol abuse or engage in any hazardous activities.  Only those statistically likely to live the longest will be offered the best rates.

What about No Medical Life insurance?

You may have heard of something called no medical life insurance. No medical life insurance is the wrong thing for you to consider if you think you might qualify for preferred . No medical life insurance premiums are higher in exchange for not requiring a medical exam. If you have a medical condition no medical life insurance is a good choice.

If you want to learn more about preferred life insurance we recommend you talk to a life insurance broker.

What can I do if I have been declined Life Insurance?

mother and daughter

A lot of people think they are out of options when they are declined life insurance. Major insurance companies regularly decline people life insurance and people often come to us for advice. Typically this occurs because of something in your background that makes you a higher risk. Typically diabetes, obesity, a previous cancer diagnosis or alcoholism. Do not assume just because your current insurer won’t provide life insurance that you

mother and daughter

are no longer eligible for life insurance. Clients previously declined life insurance have obtained life insurance with our help.

In our region, Windsor and Southwestern Ontario, the risk of cancer is higher. Often due to

where people worked. While prior history of cancer will put you in a higher risk category it does not prevent you from obtaining life insurance.

Life Insurance Risk Factors

Less than 15% of applicants qualify for the best rates for life insurance. Insurance companies assess as “standard” anyone with average life expectancy ratings. They “rate” everyone else on the basis of various risk factors and increase premiums accordingly. Here are a few of the more common reasons for high risk life insurance.

1. Obesity: If your weight is considered high for your height and you have high blood pressure or diabetes, this is considered high risk.

2. Blood pressure: Uncontrolled blood pressure will typically trigger refusal of your application. You are more likely to be insured if your blood pressure is high, but controlled by medication.

3. Travel: An insurer may decline you if you plan to travel to a region it views as dangerous or unstable. You may be able to exclude your trip from the policy or start your policy once you get back.

4. Alcohol use: Three or four alcoholic drinks a day will probably increase your insurance cost. If you regularly drink large amounts of alcohol you may be declined.

5. Drug use: Use of illegal drugs such as cocaine, crack or heroin is usually a showstopper. Marijuana users are typically treated as smokers and pay twice the premiums of non-smokers.

6. Dangerous recreational activities: Scuba diving and bull riding are considered high risk, for example.  Insurance policies  are available for some high risk activities.

7. Careless driving or DUI: Careless driving or driving while impaired by drugs or alcohol can result in either declined life insurance or cancellation of an existing policy if you have a record.

Declined Life Insurance Options

If any of the above applies to you it may be possible to make lifestyle changes and secure life insurance when you have previously been denied. It may be necessary to supply proof.

If you think you are likely to be declined life insurance for other health related reasons we recommend you contact a life insurance broker that specializes in high risk life insurance. In addition to having access to insurers that cover your condition, options may include, no medical life insurance or funeral expense insurance.

Declined life insurance does not have to mean uninsurable.





What are the chances I will develop cancer?

most common forms of cancer in Canada

What are the chances I will develop cancer is a question we often get asked. Well, according to the latest report from the Canadian Cancer society nearly half of all Canadians will be diagnosed with Cancer in their lifetime, according to the Canadian Cancer Society 2017 report.

What are 4 most prevalent forms of cancer?

most common forms of cancer in Canada

Lung Cancer
Colorectal Cancer
Breast Cancer
Prostate Cancer

Most of us know a family member or friend that has suffered from one of the above forms of cancer.

What are the other significant findings from the Cancer Society report?

Cancer risk in Canada

The numbers are chilling, but it’s no all bad news. Survival rates are on the increase, typically 60%.

So what can I do about my increased chances of developing cancer?

Obviously the first step is follow the advice of the Canadian Cancer Society.
“Actions like quitting smoking, eating well, being physically active and practising sun safety, along with appropriate cancer screening tests, can go a long way to reducing your risk of getting cancer.”

Since you now have a better understanding of your chances of developing cancer it pays to have a plan to protect your loved ones financially in the event that the worst were to happen. For the reasons stated above Life Insurance should not be a luxury. Depending on your age and circumstances you might want to consider:

Term Life Insurance – the most popular, typically the cheapest and favoured by younger applicants because it takes into account a term of typically 10 years at a time. Learn more about Term life Insurance
Whole Life Insurance – provides the most peace of mind, covers the rest of your life and the cost stays the same throughout. Learn more about Whole Life Insurance
No Medical Life Insurance – favored by people that either have a pre-existing condition or prefer not to have a medical examination. Learn more about No Medical Life Insurance
Funeral Insurance – covers just only the most basic costs, such as funeral expenses. Learn more about Funeral Insurance

But the initial survival from cancer rate is 60%, do I still need insurance?

Most people are not able to continue working while being treated for cancer. If that happened to you, who would pay your bills? Luckily there are 2 types of insurance available to ensure your loved ones are covered financially in the event of you undergoing treatment for cancer.
Disability Insurance – provides a lump sum payment designed to cover expense while undergoing treatment. Learn more about Disability Insurance
Critical Illness Insurance – provide income replacement if you are unable to work due to illnesses such as cancer. Learn more about Critical Illness Insurance

If you have been diagnosed with cancer and have been declined life insurance by your current insurance company do not assume it is impossible for you to obtain life insurance. As licensed insurance brokers we have access to a wide range of specialist policies from a range of insurance companies and have in many cases secure life insurance policies for people that had previously been denied life insurance.

Now you know more about your chances of developing cancer, it makes sense to do something about it. The longer you wait the more expensive life insurance becomes.