Risk Factors
Primary Risk Factors
MR. WATSON: Primary risk factors. There are several risk factors. "M.O.P."
- "M" is for "morals." We are going to look at your lifestyles. Smoking, excessive drinking, or drug abuse
- "O" is "occupation."
- "P" is your "physical condition." Weight, etc.
MR. WATSON: Occupation - The "probability of disability." We're concerned with the probability and the average severity of the disability. Who is more likely to become disabled, the guy in the circus with the apple on his head, or the guy in the circus with the bow and arrow shooting at the guy with the apple on his head?
ALL: The guy with the apple on his head..
MR. WATSON: Remember, if you change to a less hazardous occupation, the company will return any excess premium, but if you change to a more hazardous one, the benefits will be reduced and the premium will remain the same. This does not apply to a disability policy (non-cancellable policies) because non-cancellable policies are sold only to individuals in the higher occupational classes in which change of occupation is seldom a factor. Limited risk policies (cancer, heart disease) are usually available at standard rates for all occupations except those that are specifically excluded. Y'all understand?
ALL: Yes.
MR. WATSON: Insurance companies will classify you as AAA, AA, A, B, or C. Maybe only AAA (doctors and lawyers) can get the noncancellable policies. Maybe some people in AA could get that, too. Who is in AA? The drinkers. Not really. Right. And then A, B, and C.
MR. WATSON: Most compnaies use something like this:
- preferred,
- standard,
- substandard, or
- uninsurable.
MR. WATSON: Some people can't get any insurance at all. Like steeplejack guys or airplane test pilots or stunt flyers.
WOMAN: What is a steeplejack?
MR. WATSON: Works up high. You know how they change the lights on the Skyway Bridge? Carefully.
MR. WATSON: Other risk factors
- age
- sex
- history
- avocations
MR. WATSON: Age - does age make a difference? If you are an older, you are going to pay more than somebody younger. You agree?
ALL: Yes.
MR. WATSON: Sex, gender?
MR. WATSON: Who pays more for health insurance?
ALL: Women.
MR. WATSON: Until when?
ALL: 55.
MR. WATSON: By age 55. Why? Statistically, men, age 55 and over, have a higher incidence of sickness than women.
MR. WATSON: Guys, what is an occupation or hobby that would cause you to pay more for health insurance?
ALL: Sky-diving, hang-gliding, policeman, fire fighting.
MR. WATSON: Hobbies. Sky-diving, mountain climbing, scuba diving , etc.