Which statement BEST explains why insurance companies charge higher premiums for high-risk individuals and events?
The risk of monetary loss is greater for these people and events
.
If your
credit score goes down due to increased debt
, decreased income, missed or late payments, too many credit inquiries, or some other reason, your insurance company may choose to increase your premiums to protect themselves.
Can insurance companies charge more for obesity?
The site also found that
obesity increases premiums by about 150%
– or more if the person also has medical conditions associated with being overweight. As for health insurance pricing, the Affordable Care Act allows insurers to increase premiums by up to 50% for smokers. … The ACA makes no similar exception for obesity.
Five factors can affect a plan's monthly premium:
location, age, tobacco use, plan category, and whether the plan covers dependents
. FYI Your health, medical history, or gender can't affect your premium.
Do insurance companies charge more for smokers?
In most states, yes. Generally,
an insurer can charge as much as 50% more for a person who uses tobacco products
. For example, if the premium for somebody your age (before any tax credits are applied) would otherwise be $200 per month, if you are a tobacco user your premium could be increased to $300 per month.
Rate level increases come about when an insurance company finds that
their overall rates are too low given the expenses (losses) incurred from recent claims
that have been submitted, and on trends in the industry towards more expensive repair and medical costs.
As the insurance companies cannot indefinitely cover the difference using their reserves, they must find a way to remove the gap between the high healthcare costs and the premiums received leading to an overall premium increase. This is one factor why
health insurance premiums go up every year
.
Will health insurance premiums increase for unvaccinated individuals? THE ANSWER:
No, health care premiums will not go up just
because someone is unvaccinated but you may need to talk to your employer about possible changes to your health care plan.
Can you lie about smoking for life insurance?
You could be denied a life insurance policy if you lie on the application about your smoking habits
. Many insurers require a life insurance medical exam that includes blood samples and urine tests that screen for nicotine use. You could also be denied if you have medical conditions in addition to smoking.
Do they weigh you for life insurance?
Life insurance applications
ask for height and weight
, and those numbers will be verified when you take your life insurance medical exam. But don't plan to go on a crash diet to lose 20 pounds just before the exam to get a better price.
The core reason for the rise in health insurance costs are:
rising healthcare, lack of insurer competition
, and lack of transparency to help consumers make informed decisions.
Your Location
The rules of your state or municipality
affect your premiums, as does the amount of competition in the area. If many health insurance companies are competing for your business, better premiums are usually available compared to if you lived in an area where there's only one option.
Insurance companies use
mathematical calculation and statistics
to calculate the amount of insurance premiums they charge their clients. Some common factors insurance companies evaluate when calculating your insurance premiums is your age, medical history, life history, and credit score.
What if you lie about smoking on health insurance?
If you're not honest about tobacco, you
risk being charged with insurance fraud
. Even such “soft fraud” is considered a misdemeanor and can result in sentences of probation, community service — or even time in jail.
How do insurers know if you smoke?
Insurers will assume that your application is truthful, but if they later suspect anything is amiss, they could
ask for a urine or saliva test
to find out whether or not you are a smoker. They might even contact your GP for information on your medical history, which will reveal whether you have smoked in your lifetime.
Smokers can get life insurance, but
you will pay much higher rates if you use tobacco products
. We analyzed life insurance quotes from five national insurers and found that smokers paid an average of 215% more for coverage than nonsmokers.
