Connect with us

Markets & Finance

Tips To Obtain The Best Life Insurance Policy

Tips To Obtain The Best Life Insurance Policy

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.

Tips To Obtain The Best Life Insurance Policy

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.

Continue Reading

Recent Posts

Business4 weeks ago

Your Basic Guide To Creating A Unique Investment Blog

Starting your own blog is great and once you get the ball rolling, it can be a good passive income...

Business4 weeks ago

3 Low-Risk Ways To Get Your New Business Started

Once you’ve got an initial business idea and believe that it will be a success, there are some basic things...

Lifestyle1 month ago

Conquering the Co-free Zone: Tips for Thriving as a Remote Worker

Adjusting to an office environment can come with its downfalls in the sense that it might be a shock to...

General2 months ago

3 Ways To Take Control Of Your Finances Starting Now

If your finances have taken over and are bringing stress to your life, we understand just how overwhelming it can...

Travel4 months ago

Best Places To Visit In The North Of England

If you live in England, you will know there are many different places to visit for the weekend. There are...

General4 months ago

Green Home Improvement Ideas

In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...

Lifestyle4 months ago

How to Host an Unforgettable House-Warming!

The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...

Autos4 months ago

A Guide to Parking Lot Striping

The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...

Business7 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle8 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing8 months ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...

Business8 months ago

Avoiding the Wrong Kind of Growth

Growth is vital for any business – some models, like tech start-ups, are built around periods of dramatic, explosive growth...

Business8 months ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Tech11 months ago

What Is The Difference Between Cyber Attacks and Cyber Threats?

If you own a business that uses the cloud to manage workloads, you have probably heard of the terms cyberattack...

Marketing11 months ago

3 Types of Marketing Every Small Construction Business Should Do

Construction is a very saturated sector, whether you’re a large or small construction company, so marketing should be at the...