Rated Policy: A policy just like everyone else, except that
you are charged extra. A person is issued a rated policy if he or she has an ill-health
or avocation, which causes the insurance company to think there, is a higher probability
that you'll file a claim.
For most types of insurance like health, life,
disability, auto, and long-term care, Rated policies apply.
A policy can be rated because you are overweight or have too
many speeding tickets. On the other hand, you have a family history of early
deaths or hobbies like SCUBA diving.
Except charging of higher premium, there
is no difference in the policy benefits than for a non-rated policy. In some cases,
if the condition no longer exists, the insurance company will offer to remove
the rating (i.e., you stop SCUBA diving).
It is extremely important that you provide full and complete
answers on all insurance applications. If you don't, and the insurance company
later learns that you did not disclose a pre-existing condition, they have the
right to deny benefits when you (or your heirs) make a claim.
One of the factors that insurance consider is age. If you
are older than 67 then your premiums are higher often and you are offered the
Rated Premium Policy. In addition, you probably will receive the Rated Premium
rates if you rarely exercise or do not exercise at all.
Besides, if you live an unmanageable lifestyle, such as
engaging in dangerous sports, smoking, or drinking alcohol obsessively then you
are a high-risk candidate that most likely will pay higher premiums.
The company will consider age factor each year you grow with
your policy. Thus, during the policy, with your changing age and health, you
may pay higher premiums. In addition, you probably receive the Rated Premiums if
you work at a job that pretense risk factors.
According to the information provided by the customer, Rated
Premium Insurance is based and many risk factors were considered by the policy.
If you are a smoker then the average premiums rate at 65% higher risk.
The statistics have shown that people who do not smoke often
live healthier lifestyles and rarely die of cancer. Since today many people who
do not smoke are dying due to cancer, the statistics are finding new information;
however, the likelihood of risk is exceptional to smokers.
According to all insurance companies, the definition of
smoker is given as, A person, who used, smoked or otherwise consumed any kind of
tobacco products at some stage in the previous 12 months. Although, many
companies have various timeframes, this is considered to be as a more general
definition.
Since the term of the life insurance is also a common factor
that is considered by most insurance companies, you must also be aware of the
life insurance term. You must also consider critical illnesses, and if you
expect to undergo some form of illness that will worsen your health.
You will
also need to consider whether your drink alcohol, your weight, age, job status,
smoke, and other areas to provide the insurance agency since the company will
consider the answers.
If you have life insurance policy and own a home, devoid of
coverage for mortgage then you may want to consider purchasing mortgage and
life insurance coverage. We can't foresee death, but for our loved ones, we can
certainly provide a measure of security.
Life insurance policies are the term of life you expect to
live. Thus, if you do not have sufficient coverage and die then your loved ones
are out of money, since they will pay the burial expenses and mortgage if you
owe on your home.
Other policies including Critical Illness can be of benefit,
since these policies will coverage illnesses, mortgage, credit cards, and other
debts that incur as a result of your illness.
Besides, if you have a family you want to provide cover for
them too, but the Joint Policies are often more expensive than the Single
Policies, so consider the discounts you will receive on Single Policy Coverage.
In conclusion, if you do not fall under the Rated Premium
category, then your rates and premiums are the common rates with the exception
that you have mortgage.
If you need mortgage coverage, expect to pay higher
premiums and rates, since capital and burial combined is expensive to payoff.
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