Life Insurance Rates

How are Life Insurance Rates Calculated?

A client spoke with me today in regards to how Life Insurance Rates are determined. I wanted to share the information with my readers.

Two main factors that influence Life Insurance Rates are a person’s general health or family medical history, and the second is the age of an individual.

Life Insurance Rates vs Health and Age

We  know that a healthy 25 -year-old policy holder and a healthy 65-year-old will pay different rates; the older individual will pay more than a younger person. Your family medical history and general health will play a big part in how much you end up paying for your life insurance premiums. When applying for Term Life Insurance , most insurance companies , that may offer the best rates, will generally require a fully medically underwritten exam. They will require a general physical and a urine and blood sample.  These tests will allow the insurance company to determine if the applicant has any pre-existing medical conditions that may put them in a High Risk ( Health Impairment ) class.

Medical Exam

If you go with a fully underwritten Life Insurance plan  versus a No Medical life insurance plan then you will be getting a  Paramedical Exam . This is a home or office visit for to the applicant  in order to collect urine and blood samples. They will also require you to complete many health-related questions to determine the status of your health. You will most likely need to answer questions that concern diabetes, high blood pressure, heart disease, cancer or any other serious health condition.

Once the medical information is gathered, it, along with the application, will be sent to the selected carrier for their underwriting.

Before we create a customized quote or if you plan to run your Life Insurance Quote Online, you must have a practical and realistic overview of your health.

Contact me today or fill out my contact request from. My number is 512-963-5000.