Substandard Risk - (impaired risk)

Substandard Risk - (impaired risk) Substandard risk refers underwriting classification for individuals that have significant health concerns. who is considered riskier to insure than the average individual on account of their age, habits, family history of disease, health condition, occupation, hobbies, morals, and residential location or surroundings. It is also known as impaired risk. The factors that can trigger a substandard risk are for example; -high age, -health issues, -family history of health issues, -drinking alcohol above average, -smoking cigarettes, -using drugs, -a poor driving record, -dangerous occupation, -dangerous habits, -residence in unhealthy surroundings. As seen from the triggers insurers look at family and medical history, as well as driving and employment records to assess risk. Hazardous jobs and dangerous hobbies can also trigger a substandard insurance rating. Higher risk insureds include those that have poor physical health or poor driving records, among other things, those working hazardous jobs and dangerous hobbies can also trigger a substandard insurance rating. For example, an individual who has survived cancer may be considered a substandard risk for health or life insurance policies. Some of the limitations of Substandard risk are; Substandard risk policies may be more expensive than standard policies, it may also come with a high deductible, coverage for this risk may be more difficult to find than standard since not all insurers offer them. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful