Buying life insurance is one of the best decisions that a person can make. Life insurance is a valuable asset that provides individuals with the peace of mind of knowing that if death were to occur, a financial benefit will be made available to allow those left behind (i.e. loved ones and other beneficiaries) to continue and maintain their lifestyles.
When making the decision to buy life insurance, a person should have an understanding of the factors that are considered before the insurance policy is issued. The less risk you present to an insurance company, the lower the premium rate you will pay for the coverage you want. Here are some tips and things that you need to understand about how insurance is priced and what you can do to lower your rate.
Factors That Go Into Rating Life Insurance Policies
First you make an application for a life insurance policy and pay the initial policy premium. The application is then reviewed by the company’s underwriting policy, the area of an insurance company that is responsible for assessing risk and making a determination about your relative health and the potential risk you may pose if your death were to occur before it is expected. The insurance policy application contains a section known as Part II, which is the area of the application that asks for basic and specific medical information.
An insurance company wants to know if you visit a doctor on a regular basis, what your height is relative to your weight, whether you smoke or drink alcohol on a regular basis, and if you engage in certain risk behaviors like driving too fast. All of these factors, when weighed together, will result in you being classified as a premium, standard, or sub-standard risk. Individuals who are rated premium pay the lowest for their life insurance while those at a sub-standard risk pay the most for a comparable level of coverage.
Which Type of Insurance Should I Buy?
One of the ways in which a person can save on their life insurance initially is through the purchase of a lower-cost term life insurance policy. Term, unlike more expensive types of permanent life insurance, provides the same level of benefit for a term of years (typically until age 65). Usually this type of protection can be converted into a permanent plan, providing you with a way to get insurance initially at a lower cost, lower your risk rating, and resubmit through conversion for a cash-value permanent life insurance plan.
There are also blended policies that combine term and permanent life insurance coverage into one policy. These plans can be customized to give you the life insurance protection you desire at a cost that is more in line with your budget.
Ways to Reduce Level of Risk for Life Insurance
It is helpful for a life insurance policy applicant to present the best case for insurance that they can. What this means is that efforts to manage certain risk factors—such as diabetes (weight) or cancer (smoking)—can help mitigate the receipt of a higher rate for an insurance policy. A person who switches to a low-fat, low-sodium diet, as an example, is looked upon more favorably than an individual who eats unhealthy meals. A person who walks or runs, joins a fitness center, and exercises on a regular basis can also present a case that their risk to a life insurance company is lower than that of a similar individual who does not engage in healthy activities.
Jonathan Harrisburg writes on finance, insurance, business, investing and other related topics. Mobile phone owners looking for additional protection should consider Protect Your Bubble iPhone insurance.
Image credit goes to prov1112004.
10 Largest Cities In Texas By Population (2020)
Western countries are way less populated than eastern ones. But the west is also playing a part in increasing the...
The Greatest Night Clubs in Las Vegas for Bottle Service
Las Vegas is loaded with the dance club and picking one can be a significant undertaking for somebody who is...
Why is Investing in Healthcare is the Best Option for Medical Professionals?
Healthcare industry is considered as one of India’s largest sectors, both regarding employment and revenue generation. It is expected to...
The need and use of the Vial Box
There are a lot of healthcare professionals and caregivers that have to assist the living facilities and there are a...
How To Buy an Abstract Rug Online and Avoid the Mistakes Involved
We are currently living in the golden age of nesting. Especially as part of the millennial generation, we gravitate towards...
Begin Your Love Story With Disabled Dating
We want you to know – you aren’t DISABLED, you are just differently-abled because the only disability in life is...
Are You Selling at Least The Basics To A Beach Vacationer
In winter, a lot of people travel to major attractions such as warm beaches. These travelers often have to pack...
What You Need to Know Before Starting a Business
Congratulations, you did it. You decided to quit your day job and start a business. Being your own boss is...
.Net 3.1 Latest Features Released By Microsoft
.Net 3.1 Latest Features Released By Microsoft The latest version of .net core 3.1 has been released by Microsoft that...
BEST SPORTS FOR KIDS TO ENGAGE IN THIS YEAR
We are in a generation where our children are living an inactive lifestyle with very minimal or no sort of...
Buying a Strata Property – Is it a Good Investment for You
Buying a strata property is a scenario where you purchase a small portion of the complex and get access to...
What You Should Know About Google’s New VR/AR Features for the Web and Mobile Applications
Virtual reality (VR) and augmented reality (AR) are emerging technologies that provide users with a wide range of unique and...
Get the Kitchen of Your Dreams with the Best Remodeling Tips
Get the Kitchen of Your Dreams Among all the rooms of the house, the kitchen is the most versatile. It...
What does a Cyber Security Specialist do?
In our current reality, where a Security Guard ensures resources and a Bodyguard ensures individuals, a Cyber Security Specialist shields...
Why Would You Hire A Holiday Lights Service? Why Not?
The holidays bring us the tradition of baking, shopping, wrapping, parties, Christmas pageants and parades, tree decorating, and hanging lights....
- Tech5 years ago
Creating An e-Commerce Website
- Tech5 years ago
Design Template Guidelines For Mobile Apps
- Business4 years ago
The Key Types Of Brochure Printing Services
- Travel8 years ago
Who Else Wants Also Nfl Hat
- General5 years ago
Kobe Bryant With His Unique Nba Jerseys
- Tech5 years ago
Climb Google Using These Checklists
- Tech6 years ago
Why Small Businesses Can't Ignore Mobile Technology
- Health6 years ago
Health Supplements For Sports Activities Nutrition