Getting a life insurance policy is a good investment. It protects your family even when you are deceased. Apart from knowing the different life insurance policies like term or permanent insurance, you also need to know the rates for each type. Insurance life rate depends on various factors. Knowing these can help you determine the rate you need to pay. It can also help you take a few steps to get lower rates. Go ahead and learn about the factors that go to make up rates of life insurance:
• Birth date
• Health status
• Nicotine use
• Occupation
• Hobbies
• Medical history
When you ask for a life insurance quote, – whether online or through an insurance agent – most companies will want information about the above points. Once you give them these details, they will give you a quote. So, let us see how these factors affect insurance life rates. Young persons will get a lesser rate since they are considered to have a longer life expectancy. So, your birth date determines whether your insurance rates will be high or low. An elderly person is said to be at a higher risk of dying early and can also have some medical conditions.
All insurance companies will ask for a complete medical exam to be undergone before a policy is issued. They will have to submit blood and urine samples, give their height and weight, and take X-rays and ECG to determine their health status. All medical conditions like AIDS, high blood pressure, high cholesterol, diabetes, and heart disease will be revealed at this point. This will have a serious effect on your insurance rate. Hence, take good care of your health and know all treatable medical conditions before applying for life insurance.
Of course, it is still possible to get a policy without undergoing any tests. This type is called life insurance no medical and is available for both insurance categories. However, even for this, the insurance company will ask a few health related questions and cross check medical records before issuing a policy. Still, it is possible to get insurance coverage without a medical exam although you must know that insurance life rate for this plan will be much higher that for one where a medical test is undergone.
Smokers and alcoholics will attract higher insurance rates since the mortality rates among such people are very high. The rates will be calculated only after determining a person’s nicotine use. If you want to get low insurance rates, quit these habits at least six months before applying for a policy.
Occupations like miners, fishermen, construction workers etc. are all at risk of dying due to an accident. Hence they will attract higher insurance rates. Similarly, those who involve in danger sports like sky diving, bungee jumping or deep sea diving etc. are also risking their lives while enjoying these sports. Insurance companies are reluctant to provide coverage for these people or charge very high rates. Many illnesses are hereditary. so, insurance providers will ask your family medical history when you ask for a quote.
Universal life insurance is a hybrid form of whole and term life insurance. It was introduced in the late 1970s as a flexible option to both these policies. When you invest in universal life insurance, you will be paying premium like all other plans. A part of this is invested in growth schemes and your premium value and interest is what determines the cash value you have in your account. The cash value is the portion that supports death benefit. As long as your account has enough cash value, your policy will exist. Once there is no cash value, it will cease to exist.
A great benefit of universal life insurance is its flexibility. The policy holder can pay more or less premium depending on his personal financial situation. If he wants to maintain the policy for a short period, he can pay more premium amounts. If he has some financial constraints, he can reduce premiums or even skip payments. Of course, there are risks involved with this policy, so know them before investing in it.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance life quote and low cost term life insurance, visit his site today.
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