What is High Risk vs Standard Risk cover?
Standard risk cover is when there are no extraordinary factors that would increase the likelihood of a claim. The level of risk is influenced by such factors as the applicant’s health, age, gender, smoking, alcohol consumption, lifestyle habits and stage of life. When the risk is standard, the premiums stay at a standard rate.
Cover becomes high risk when any or some of the above factors substantially increase the likelihood of a claim. If you have a pre-existing medical condition/s, or you work in a hazardous occupation, your cover may be considered high risk and (if these conditions are not excluded) it will be reflected with higher premiums.
For example, Jane is a fit and healthy, non-smoking, moderate drinking 28-year-old dental nurse with no pre-existing medical conditions. Her father Albert, however, is a 59-year-old roof tiler who smoked for 20 years and takes medication for hypertension. The risk of a claim for Albert is clearly greater than for his daughter (and not just because of age), and therefore Albert’s premiums will be higher than Jane’s.