Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

How Anti-Selection Impacts Your Insurance Coverage

7 Feb 2025 · 1 min

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0:33

A short YouTube video by Richard Canfield explaining anti-selection in insurance: people who develop adverse conditions (e.g., cancer) may seek additional coverage, so insurers mitigate this risk by imposing limits (either annual or lifetime) and selection processes. The clip describes approval rules and examples of limits insurers use.

Chapters

The insurance company is in the business of mitigating risk. One of the risks that they need to mitigate is what's called anti selection. Anti selection has to do with an insured person who maybe has adverse effects or maybe they develop cancer or something and they might want to buy more coverage. They do selection processes to mitigate that. If you're approved for insurance and you develop, let's say, cancer, they wouldn't approve you to keep doing that. But if you've already got it in place, you're allowed to keep doing it. To mitigate those risks, they have to set some limits. Some companies set the limit on an annual basis. Other companies set it on a lifetime basis.