When shopping for a life insurance policy, there are many different criteria that are important in determining how the premium rate will be calculated. Knowing what these factors are, however, can make finding the best term life insurance rates much easier.
Unlike other types of products that are charged a certain price regardless of the buyer, the premium for life insurance coverage depends primarily on buyer-related criteria. This is why life insurance underwriters will review the application for coverage as well as, in many cases, a medical exam and additional health related information prior to making a final coverage decision.
Some of the key factors that make up term life insurance rates can include an applicant’s age, gender, and health condition. This is because these criteria all play a role in the individual’s overall life expectancy.
When a life insurance company considers an applicant for coverage, it wants to ensure that it is not taking on too much of a risk of having to pay out a large monetary claim. If, for example, an applicant is anticipated to have a long and healthy life expectancy, then the insurer is likely to insure the individual – and it may even offer the applicant a policy with favorable premium rates on his or her policy.
Conversely, if the applicant appears not to have a long life expectancy based upon age or health related conditions, the insurer has a couple of different options. One alternative is to offer the individual the coverage, but at a higher premium rate. This is typically referred to as placing the insured into a “substandard” rating category. The other option is to deny the insured for coverage altogether.
While most life insurance companies have a similar method of underwriting their applicants for coverage, not all insurers use an identical system. Therefore, a health condition that may deem an applicant as being uninsurable at one insurance carrier may only place him or her into a substandard category at another. This is why it is always best to compare coverage with several insurance companies prior to making a final decision on where to purchase your life insurance coverage.
Likewise, the premium rate that is charged for coverage may also vary a great deal from one life insurer to another. So, similarly, it is oftentimes wise to compare the premium rates of several insurers – even for the identical amount of death benefit and other policy features.
In addition to an applicant’s age, gender, and health condition, there are a number of other factors that a life insurance underwriter will take into consideration prior to making a determination regarding coverage. These can include the following:
If you have a pre-existing health condition, there are still ways to obtain the life insurance coverage that you need. First, depending on the actual condition, it could be possible to qualify for a traditionally underwritten policy. In this case, however, you may be accepted by the insurer as a substandard policy holder and be required to pay a higher rate of premium.
Alternatively, you may also opt to apply for a no medical exam life insurance policy. As the name suggests, there is no medical exam required in order to qualify for this type of plan. Therefore, even those who have certain type of medical conditions can typically qualify for this type of life insurance coverage.
Although the premium rate that is charged on a no medical exam life insurance policy is usually higher than that of a traditionally underwritten plan, it could be the only alternative for obtaining the protection that is needed and is therefore, well worth the price.
For those with pre-existing conditions who wish to go through the medical underwriting process, it is likely that the life insurance underwriters will need to know more in-depth information about your particular health condition. Some of the questions that you will typically be asked may include:
In addition, you will also likely be required to undergo a medical examination. This will entail meeting with a paramedical professional who will take blood pressure and heart rate readings from you, as well as ask additional health related questions.
The medical exam will also require that you submit a blood and urine sample. These samples will be analyzed for certain types of health issues that may pose risk to the life insurance company.
After all of the information from the coverage application and the medical examination has been submitted, the life insurance underwriters will be able to make a much more clear determination regarding your risk status – and, if coverage is offered, they can also determine an appropriate amount of premium to charge you for your policy.
When pricing life insurance policies, term life coverage will typically cost less than permanent plans. This is because term life insurance provides only death benefit protection without any type of cash value build up.
Term life insurance is considered to be the most basic life insurance that there is – as well as the most affordable. This type of coverage can offer an individual a way to obtain a large amount of death benefit at a very reason able cost – especially for those who are young and in relatively good health.
This type of life insurance protection is offered in varying lengths such as for 10-years, 15-years, 20-years, 25-years, and 30-years. Term can provide a great way to cover a “temporary” need, such as ensuring that the balance of a mortgage will be paid off should the primary breadwinner in the family pass away.
Term life insurance can also oftentimes include various policy riders. These can include a return of premium rider whereby if the insured lives through to the end of the policy’s length, he or she will receive all of their premiums back, as well as a conversion rider where the term policy can be converted over into a permanent type of life insurance coverage at a date in the future.
When you’re ready to start comparing the best term life insurance rates for you or someone you know, it is best to work with a company that has access to more than just one insurance carrier. That way, you can obtain information on many different policies, benefits, and premium quotes.
Our team at BestLifeInsuranceCompanies.org can help you to obtain the information that you need. We work with many of the top life insurers in the market today and we can get policy information to you quickly and conveniently right from your home computer. There is no need for you to meet in person with a life insurance agent in order to apply for coverage.
The policy information and quotes can be obtained within just seconds, rather than days or weeks, and there is no need to even bounce around between different insurance companies’ websites, because you can obtain all of the information from one convenient location. When you are ready to begin the process, use the form on this page to get started.
If you should need any additional information regarding how to obtain term life insurance rates, or even about life insurance policies in general, we have experts who are available to help. We can be reached to assist you directly by calling, toll-free, 888-229-7522.
Buying life insurance can be a big decision – and it is important to obtain the right amount of protection to help the ones you love move forward. It is also important that the coverage you purchase fit into your budget. We’re here to help you find the policy that is right for you. Contact us today – we’re here to help.