One thing you will quickly learn about health insurance; The more convenient it is to get (the lack of questions asked), the higher the premiums will be, and the more restrictive the coverage becomes.
How could it be any different?
No one would ever question why you must provide your age in order to determine your life insurance premium. After all - someone who is 80 years old is not likey to outlive someone who is 25 years of age, although it is possible. When you include 10,000 people from each age group it becomes almost a certainty that all of the 80 year olds will be gone well before the majority fo the 25 year olds are.
Health conditions and life style choices are no different.
Smokers pay almost twice what non smokers pay for life insurance. There is a reason for that. Life expectancy.
How could it be any different?
No one would ever question why you must provide your age in order to determine your life insurance premium. After all - someone who is 80 years old is not likey to outlive someone who is 25 years of age, although it is possible. When you include 10,000 people from each age group it becomes almost a certainty that all of the 80 year olds will be gone well before the majority fo the 25 year olds are.
Health conditions and life style choices are no different.
Smokers pay almost twice what non smokers pay for life insurance. There is a reason for that. Life expectancy.
The second thing you will learn - a lack of medical investigation when you buy life insurance means that the underwriting will be done at the time of claim rather than at the time of application. Your coverage will be subject to a medical investigation of some kind at some time. Now it becomes a question of - did you actually qualify for the coverage? If you didn't your beneficiaries won't get the money.
There is one life insurance policy - guaranteed issue life insurance - which does not use health to determine the premium. Everyone will pay the same premium. Once you see the premium and the coverage conditions you will soon realize just how true all of this is. They simply assume that everyone is within two or five years of death and charge accordingly. If you don't live beyond two years they only refund your premium.
The one thing you must come to realize - It is never a gamble for the life insurance company.
Life companies pretty much know how many people will survive to what age. All they have to do is insure enough people so there is no risk of insuring any one person. Don't worry they build in a margin of error so if things change they don't come up short. In the meantime their profit margin is built in and they will make money. How much they make, really depends on how convenient you want them to make it for you to get the coverage.
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