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There are a number of factors that affect life insurance premiums and many different ways in which the premium is affected. In Canada the importance of Life Insurance is to a huge level & depends on the circumstances and the risk factors associated. The current pandemic, i.e. COVID-19 is the most recent example. This is more importantly of how life insurance holds importance for Canadians. Especially for those people who are highly prone to get the pandemic due to age concerns or their health history. For some people irrespective of the risks associated COVID-19 is a huge threat and needs life insurance as a backup. Life insurance premiums vary significantly according to age, occupation, health hazards & risks levels associated. On top of this, also the different number of factors that can affect the life insurance premium figures.

THE POTENTIAL RISKS TO LIFE:

Risk to life is always there while you are working 9-5 and driving your way to your work. Alternatively, you have to travel a lot for your career or business purposes. Particularly, the travelling is from a town to nearby metropolitan, i.e. to Toronto, from any suburbs. Involved & exposed with life are a number of potential risks. These risks are always exposed to a person who is striving daily at work. The risk can be at your job site and it can be somewhere you go for relaxation. Example includes having a coffee after work, or at an exercise location.

The aim of the Life Insurance companies is to analyse the risks involved. Furthermore, give the best suitable solution regards to the risks and how to get away with it intelligently. If you are into hiking and outdoor activities. What needs to be overlooked consequently are a number of risks involved. However, your premium can be a bit on the higher side. Consequently, if there is persistence with activities that involves taking risks.

The number of risks involved are as follows;

1. THE AGE FACTOR:

Your current age is a highly significant factor in determining the premium for insurance companies. For people more than 60 years old the age factor comes into play. Ironically, they have a probability of dying more than someone who is 40 or 45 years old. This is also irrespective of drinking and smoking habits of a particular person, and how these vary with age. Yet another thing that matters is the Life Expectancy and its stats. Obviously, L/E in Canada is high, i.e. almost 82 years old average. Significantly, which means you can have a good premium on your Life insurance. This is even if you apply at the age of 60 that is on a higher side in most countries. However, it is at least 22 years less than the Life Expectancy of Canada.

Life expectancy matters due to the living standards in the country. Furthermore, a country’s happy index apart from many other factors also matters.

2. YOUR HEALTH HISTORY:

The health history of a particular person is yet another factor that determines the life insurance premium. If you have a weak health record, having weight issues or you are prone to heart diseases. Alternatively, your insurance premium will be automatically on a higher side. However, your health history being on the good side, you exercise regularly and you have a healthy diet. Ironically, it will impact your lifestyle positively and your premium will be relatively on a lower side. This is mainly because you are not prone to death due to sudden health condition or a heart attack.

Health history also includes any family health history such as cancer in close family, or having diabetic family issues or finally weight issues. Highly analysed are all the factors vitally before reaching an insurance premium figure.

3. RISKS AT WORK:

Life at work in Canada matters a lot while making calculations for an insurance premium. If you are a construction worker, a miner, or involved in high risks activity at work place. Hence, automatically your insurance premium will be on a higher side. Alternatively, you are 9-5 workaholic working in a safe and secure office environment. Obviously, your risk to death at work or due to any fatal injuries should be really low.

4. CONSUMPTION OF ALCOHOL OR TOBACCO:

Being a regular consumer of alcohol or Tobacco increases your risk to death. Hence, the insurance premium that is associated with it automatically rises due to the risk. However, even if you are a consumer. What depends largely, whether you are a regular consumer or a casual consumer. Furthermore, a high consumer or only those who consume in social gatherings or parties. All these different categories of alcohol and tobacco consumption determines your insurance premium.

5. HOW FREQUENTLY YOU TRAVEL?

Your foreign or local travel and how frequently you travel is a factor that determines the insurance premium. Some key elements that further depends while you are travelling are duration of travel & your frequent mode of transport. Also, your destination, the country risks associated and finally how often you travel. More clearly, the frequency of travels that are associated to a certain place. All these factors determines the insurance premium for your life insurance plan and how this premium varies.

6. HEALTH & WELL-BEING:

The health and well-being factor is part of healthy living lifestyle. Hence, the insurance premium for your life insurance depends on this as well. Amazingly, this is apart from the so many factors associated with Life insurance. A healthy lifestyle depends on the country you are living. Also, your daily eating habits, and your personal circumstances, i.e. your family life and your married life. Part of the well-being are the key things associated, i.e. your inclination to sports or daily exercises, having a busy life style and being happy with your family & kids.

Ultimately, your heart is your source of a healthy lifestyle and how well can you maintain your health also matters. Health is Wealth in the insurance industry.

There has been innumerable changes in the auto insurance industry due to the current pandemic COVID-19. These are for the sustenance of the industry and how it can prevail in the fight against the pandemic. The provision of rebates is part of the advantage and deals the companies are providing for a limited period.

Auto insurance is highly dependent on some key factors that includes area/location. Also includes country risk i.e. highly dependent on many things which includes political conditions of the country. Finally, how these conditions can be found variable.

The current adjustments are because of the pandemic COVID-19. Hence, as Ontario is making some regulatory changes in their current procedures. These will allow auto insurance companies to provide breaks to their customers because of COVID-19. Hence, this change shall be a huge uplift for the customers. It will allow companies to provide auto insurance premium rebates. This is for consumers of up to 12 months after the emergency has ended.

According to the Finance minister Rod Phillips. With the removal of the barriers the expectancy level of insurance companies to respond quickly will be increased. Hence, this shall be a huge advantage in minimising the risks associated. These are risks with the insurance sector in the times of COVID-19. Hence, according to Finance Minister Rod Phillips the Provincial Govt. of Ontario wants to make it as easy as possible for the drivers. These are conveniences to receive discounts as there are so few drivers driving & operating right now. This is a reason due to the pandemic COVID-19 and the fight against the virus. More importantly, as commuting via roads and transport is limited in times of Coronavirus regulatory bodies are still active.

INSURANCE COMPANIES & BENEFITS PROVIDED:

The company Allstate Insurance Co. of Canada is giving almost all the drivers a ‘Stay at Home payment’. Ironically, which means that drivers shall be given rebates in form of payments while they stay at home. This is a huge 25% of their monthly auto premium which is a good news for the consumers. Along with the consumers advantage it is a good room for them to save money in times of COVID-19.

The other two companies that are huge in Canada in the Insurance sector are Intact Financial Corp. and Aviva Canada. These two are offering discounts of 15% for the customers who are driving less. Hence, a huge reduction of 75% for people who park and store their vehicles. Especially Aviva Insurance Canada being a multinational firm has proved in times of COVID-19. They have vitally demonstrated that insurance industry needs to act like a shield for its consumers.

Aviva Canada is a subsidiary of the UK based firm Aviva plc. The aim of the company is to provide good insurance deals to its customers in auto industry and various other sectors in insurance. There are many people in Canada that have parked and store their vehicles in times of COVID-19. This is for at least 3-4 months and Aviva Canada is providing them 75% reductions along with Intact Financial Corp.

The Govt. of Ontario has confirmed 514 new COVID-19 cases pushing the total cases from Canada to 9,000. This is mainly why there are concerns in the insurance industry especially realised by auto insurance firms.

Life Insurance is a necessity of this modern financial world. Top 6 reasons why companies deny to provide life insurance coverage. The reasons include health issues and participation in high-risk activities. It also includes specific financial reasons, filed for bankruptcy, DUI, & having a criminal record.

Hence, to have coverage from most insurance companies, the associated risks with life insurance should be minimal.

HEALTH ISSUES- A CAUSE OF LIFE INSURANCE DECLINE

Health issues are the most common ones that are the cause of companies declining life insurance. As an example, if someone is at high-risk of life and suffering from a disease like Cancer. The person is categorized to have a high-risk of life due to this particular reason. Hence, an automatic increase in risks associated with life insurance companies. This is another reason why they don’t think it’s worthwhile enough to take a risk.

For this particular reason i.e. involvement of high risk, the person might have applied with the wrong insurance company.

The best solution is to have a high-risk life insurance agent. Someone who can provide a useful insurance company. What’s needed is a company willing to give insurance on such a high risk to life. However, this is possible as companies are willing to move forward with those who can give insurance on health risks.

PARTICIPATION IN HIGH-RISK ACTIVITIES- A LIFE THREAT

Participation in high-risk activities is a huge reason why companies deny life insurance. As an example, a simple case is that while most companies insure scuba divers. This depends on the type of diving that you do i.e. (open water vs cave diving). The other factors that some insurance companies will not insure you if you are a scuba diver are as follows; the amount of time you dive a year, how deep you dive & where you dive.

If you have traveled internationally, or you live abroad for a certain period of time. Hence, there are some companies that will not insure you. Military personnel deployed somewhere are the other sets of people who will face hardships for approval. This cannot be possible unless you have worked with specific insurance companies.

SPECIFIC FINANCIAL REASONS FOR LIFE INSURANCE DENIAL

The need for financial justifications is a big financial reason for a decline in life insurance by an insurance company. In simple words, there is an intense need for financial justifications. These are justifications that a client must provide in order to move forward. The insurance company makes sure that the client is financially not weak. In addition to this, it has all the reasons to apply for a life insurance policy i.e. highly justified.

The qualification for the client also depends on the earnings per annum. As an example, we can say that somebody who has annual earnings of $22,500 per annum. Hence, that client would most likely not qualify for $1,000, 000 life insurance policy. These are calculations for the Insurance companies that they do separately for everyone. The companies know well how much a client can qualify, keeping in mind the earnings. Earnings play a huge part as they mean security for the client. The higher the security, the lesser the risk for disapproval by most life insurance companies.

FILED FOR BANKRUPTCY

If a client has filed bankruptcy due to a loan they can’t pay or any mortgage payments, in this case. Hence, insurance companies do overlook financial circumstances very carefully. Usually, there are a huge amount of companies that will deny the life insurance policy. While the client files bankruptcy which is a big reason for the disapproval of a policy. Here the risks are high and high risks mean less financial security. The word ‘Financial Security’ is the key to finding a solution that is good enough for Insurance companies. These companies need high and consistent assurance to move forward.

ISSUES ASSOCIATED WITH DUI (DRIVER UNDER THE INFLUENCE)

Having a DUI i.e. driving under the influence is a negative record and hence can have a negative impact. These are impacts on the life insurance policy of the client. In case a client has more than three DUIs in the last 10 years. Therefore, every insurance company would decline your life insurance policy. However, having at least 1 or 2 DUI’s in the last 10 years is better. This means some insurance companies will decline you while others will approve.

Having applied with DUI it is most possible that the client has probably applied with the wrong insurance company.

If you are someone who is a drug abuser or alcohol abuser. Therefore, this is most likely that you will be declined life insurance. One of the most prominent reasons for denial is the risk level.  Accidental death risk is a key reason for denial of life insurance. On a conditional basis, some companies can give the client an insurance offer. This is only if the client has stopped drug abuse for the last 3 years. Additionally, no abuse of alcohol for the last 2 years. The objective of the client should be to convince the insurance companies if they need an approved insurance policy.

HAVING A CRIMINAL RECORD

In order to have a life insurance policy, it is important to have a clear CRB i.e. Clearance from the Criminal record bureau. Having a criminal record means that the client can be under a life threat. Hence, his authority to have a life insurance policy is not safe. Having a good character reference check is a necessity. Criminal record means the person is unfit for the criteria.

However, on conditional grounds, things can definitely vary. Apart from many reasons last criminal conviction is one of the reasons for a positive condition. Along with this, when did this conviction expire. Finally, how many convictions were the person under for the last 2 years? Based on these checks the client might get insurance coverage depending on how long ago the probation ended.

However, coming in such a category it’s better to work with a high-risk life insurance specialist. A high-risk insurance specialist will definitely be of great help.

MBE INSURANCE- A POLICY INTO ACTION

Since MBE Group is a company based in Canada, MBE insurance is part of the MBE Group. According to the Canadian rules, MBE insurance also follows similar procedures that relate to Life Insurance and its risk assessment.

MBE Insurance also makes sure that their prospective clients are worthy enough according to the risk assessment procedures. It’s our policy to give Life Insurance to clients with lower risks involved. Primarily, the reason being profitability and future profitable options.

Being a new company the goal is to provide sustainable measures to our clients with low-risk levels.

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