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LIFE INSURANCE RATES
Whenever anyone purchases anything, they like to believe that they are getting a good deal for their money. If the purchase is life insurance, the best thing that people can do is comparison shop for life insurance rates to ensure that they are receiving the best prices; it is a little bit different from finding a blouse for the lowest price. With life insurance, so many factors are an issue when the insurance companies are setting an applicant’s rates such as the applicant’s past medical history, the applicant’s current state of health, the applicant’s age and whether or not the applicant smokes.
Life Insurance Falls Under a Rate Class System
After people have filled out an application for life insurance, the insurance company will place them in what is called a “rate class.” What determines a person’s rate class is the information they provide on their medical histories and how they live their lives. The rate class represents how much of a risk the insurance company believes each particular applicant will be. The factors that cause insurance companies place applicants into a high risk rate class are:
• Obesity
• Smoking
• Suffering from hypertension
• Presenting with high cholesterol
• A family history for disease
• A bad driving record
One extra consideration for some insurance companies is the applicant’s credit score with low scores being a cause for concern; low credit scores often mean that an applicant is less responsible and, therefore, a higher risk. If the applicant has a risky occupation, such as a construction worker, the insurance companies will find this information to be very interesting before setting life insurance rates. A high risk occupation raises the rates, and those who live safe and healthy lifestyles are the ones who receive the lowest life insurance rates.
People can apply for no medical exam life insurance policies to avoid the medical examination but if they do not choose this option, they will need to have a physical exam where they give a urine sample, a blood sample and maybe an EKG with an X-ray. After the insurance company receives the results, they can then place their applicants into the correct rate class.
An Example of Life Insurance Rates
According to an article from CNBC, if a 40-year-old male is a non-smoker and in generally good health, he will be able to obtain a 20-year life insurance policy with a benefit of $500,000 for $35 per month. If the applicant is a smoker, he can expect to pay 80 percent more for the exact same life insurance policy. If this male is not as healthy, he will also be charged higher life insurance rates.
How People Can Lower Their Life Insurance Rates
If people make a few changes before they apply for life insurance, they can insure that they will receive lower rates. All people have to do to put themselves into a better rate class is bring their weight down, stop smoking, eat healthy foods and exercise to lower their blood pressure and their cholesterol levels. By making a commitment to do these things, these applicants can significantly lower the price of their life insurance.
People looking for life insurance can also make it a point to seek the most information possible over the Internet on the insurance companies they are considering. They will need to make sure they know everything they can about what the company is offering and the rates they are charging for it.
To obtain information on an insurance company’s background, people can consult Standard & Poor’s and A.M. Best to check on the financial solvency of each company. The companies that are most able to meet all of their financial obligations are those with AA or A ratings from these two credit ratings agencies.
Life Insurance Rates Found Online
The Internet offers people the opportunity to find out all kinds of important information on several different subject matters. The subject of life insurance is one of those topics that easily lends itself to research; future applicants can go online and find out everything they want to know about a policy as well as obtain several quotes for affordable life insurance rates. They only need to type in a little personal information, and several life insurance quotes are quickly returned to them.
Life Insurance Falls Under a Rate Class System
After people have filled out an application for life insurance, the insurance company will place them in what is called a “rate class.” What determines a person’s rate class is the information they provide on their medical histories and how they live their lives. The rate class represents how much of a risk the insurance company believes each particular applicant will be. The factors that cause insurance companies place applicants into a high risk rate class are:
• Obesity
• Smoking
• Suffering from hypertension
• Presenting with high cholesterol
• A family history for disease
• A bad driving record
One extra consideration for some insurance companies is the applicant’s credit score with low scores being a cause for concern; low credit scores often mean that an applicant is less responsible and, therefore, a higher risk. If the applicant has a risky occupation, such as a construction worker, the insurance companies will find this information to be very interesting before setting life insurance rates. A high risk occupation raises the rates, and those who live safe and healthy lifestyles are the ones who receive the lowest life insurance rates.
People can apply for no medical exam life insurance policies to avoid the medical examination but if they do not choose this option, they will need to have a physical exam where they give a urine sample, a blood sample and maybe an EKG with an X-ray. After the insurance company receives the results, they can then place their applicants into the correct rate class.
An Example of Life Insurance Rates
According to an article from CNBC, if a 40-year-old male is a non-smoker and in generally good health, he will be able to obtain a 20-year life insurance policy with a benefit of $500,000 for $35 per month. If the applicant is a smoker, he can expect to pay 80 percent more for the exact same life insurance policy. If this male is not as healthy, he will also be charged higher life insurance rates.
How People Can Lower Their Life Insurance Rates
If people make a few changes before they apply for life insurance, they can insure that they will receive lower rates. All people have to do to put themselves into a better rate class is bring their weight down, stop smoking, eat healthy foods and exercise to lower their blood pressure and their cholesterol levels. By making a commitment to do these things, these applicants can significantly lower the price of their life insurance.
People looking for life insurance can also make it a point to seek the most information possible over the Internet on the insurance companies they are considering. They will need to make sure they know everything they can about what the company is offering and the rates they are charging for it.
To obtain information on an insurance company’s background, people can consult Standard & Poor’s and A.M. Best to check on the financial solvency of each company. The companies that are most able to meet all of their financial obligations are those with AA or A ratings from these two credit ratings agencies.
Life Insurance Rates Found Online
The Internet offers people the opportunity to find out all kinds of important information on several different subject matters. The subject of life insurance is one of those topics that easily lends itself to research; future applicants can go online and find out everything they want to know about a policy as well as obtain several quotes for affordable life insurance rates. They only need to type in a little personal information, and several life insurance quotes are quickly returned to them.