#life insurance rates
Life Insurance Rates
As with many purchases in life, cost is an important consideration. But shopping around to get the best rate on life insurance is a bit more complicated than looking for the best price on a new sweater. Life insurance rates are determined by factors such as your health, medical history, age, and whether or not you smoke.
Life Insurance Rate Class System
The cost of your life insurance premium depends on the rate class you are placed in following your application. Insurance companies make this determination by a number of criteria about your lifestyle and medical history.
Rate classes are a reflection of risk factors such as being overweight, being a smoker, having high blood pressure or cholesterol levels, family medical history and driving record all play a role. Additionally, some companies also investigate your credit score and how risky your occupation is. Bottom line: if you have a healthy life, you are likely to have a better rate.
Unless you opt for a no medical exam policy, you will need to undergo a basic physical, urine specimen, blood work, and possibly EKG or X-ray; the results of which will be factored into your rate classification.
Life Insurance Rate Examples
According to an article from CNBC, a healthy 40-year-old male, nonsmoker could get a $500,000, 20-year guaranteed level term policy for a premium of just $420 annually. The article also mentions that pre-existing health conditions can increase the rate and smokers can pay as much as 80% more for the same amount of coverage.
Strategies to Lower the Cost of Life Insurance
Keeping the cost low may be as easy as making some simple changes to your lifestyle. If you quit smoking, lose weight, exercise to maintain better blood pressure and cholesterol, you will likely improve your rate classification. These can all contribute to a lower cost of life insurance.
Thoroughly research rates and companies online to get more information about their background and offerings. Ratings of insurance companies from sources such as Standard and Poor s and A.M. Best can be very revealing. Look for companies with AA or A ratings, as this is a positive reflection of their stability to provide financial protection.
Online Rates for Life Insurance Plans
One of the best things to come from the Web is the ability to easily research any number of topics. In terms of life insurance, it can be incredibly easy to review life insurance policy information, companies and get free quotes . Simply answer a few questions and you can be on your way to receiving several quotes.