Life insurance is a great way to protect your family finally but its also a major investment. Affordable premiums can yield major savings. Let’s discuss some of the factors that policymakers take into consideration. Some of these factors are outside your control while others you can take control of with simple lifestyle choices.
Smoking: Cigarette smokers can pay as much as double the premiums for life insurance than non-smokers.
Obesity: Overweight applicants, those who have high blood pressure or high cholesterol could also pay more for life insurance.
Health Conditions: A family history of heart disease, cancer, stroke, diabetes or other chronic diseases will increase your insurance rates. Clearly, a history of chronic diseases will increase your life insurance premiums and perhaps make you uninsurable. Life insurance companies classify people by different categories that essentially determine their risk of dying prematurely. The best category and the lowest rate
Life insurance companies classify people by different categories that essentially determine their risk of dying prematurely. The best category with the lowest rate is “Preferred Plus “, followed by “Preferred.” Prices keep rising with “Standard Plus” and “Standard”. To be honest, only the healthiest people in America are rated Super Preferred. The average person will qualify for a standard rate. The classifications vary from company to company, which is why it´s a good idea to shop around.
How do you know which risk classification you qualify for? Four main factors are used to determine the total premium – your age, the amount of coverage, the number of years the coverage is guaranteed, and the risk class. Every life insurance company differs slightly in their underwriting guidelines which determine which rate classification you qualify for. The insurance company will take into consideration the following:
Learn more specifics about how rate classifications/risk classes work, click here. For more information about insurance rates, read the following pages:
If you’re unsure of which risk classification you qualify for, how much coverage you need, or how long the term should be, click speak with to connect with one of our knowledgeable representatives immediately. You can also send us an email or call our licensed agents at 1-800-521-7873. To compare quotes, simply click get a quote and you will be taken to a page that asks you to complete a form.