If you’re in the process of buying life insurance, you know that comparing life insurance rates can be confusing. After you decide on the best deal, getting the best life insurance rates may include a medical exam. Although some people find the doctor visit a little unnerving, most people say the encounter is brief.
Most humans aren’t in perfect health, so life insurance companies ask many health questions and perform lab tests when you ask for coverage. The life insurance company’s underwriting team must decide if you’re an average, below average, or above average risk. Life insurance companies prefer to write premiums and not death benefits checks to the beneficiary. Although most life insurance companies have sophisticated financial models to assess risk, the bottom line is simple. If you’re a big risk, you will pay higher than average life insurance rates. Consider ways to lower your rates before applying for life insurance.
Lower Life Insurance Rates
If you’re purchasing a life insurance policy for the very first time or if you want to lower costs of a current policy, it’s important to know the criteria underwriters use to establish life insurance rates. What you know can help you improve the odds of getting the best possible rates.
Before comparing life insurance rates, determine how much term or whole life insurance you need. Decide the type of life insurance that’s best for you. Make sure that your life insurance policy amply covers your family’s basic requirements if you die.
Life Insurance Rates: Important Factors
Calculating life insurance rates begins with your gender and current age. Generally speaking, young people have a lower death risk. If you’re young and female, you’ve got the best chance to snare cheap life insurance rates. As a woman, your mortality risk is low and that’s good news to the insurer.
If possible, apply for life insurance early in life. If you’re young and single, there’s no need to buy the world’s largest life insurance policy now. Stay healthy to secure insurers’ preferred rates until your forties.
- Buy life insurance that fits your circumstances. If you’re young, married, have a mortgage and a good career, consider buying a policy to lock in attractive life insurance rates.
Life Insurance Rates: Health Risks
Before buying life insurance, consider your health risks. If you continue to smoke, you’re going to pay higher life insurance rates.
f you’re a 40-year-old male smoker, you’ll pay upwards of three times the life insurance rates of a non-smoke man your age.
- Stop smoking now to cut your life insurance rates. Once you’re tobacco-free for at least a year, some insurers may reduce your premiums. Unfortunately, others want to know you’ve kicked the habit for at least three to five years before your life insurance premiums drop.
Like smoking, high total cholesterol or a less than ideal HDL ratio can also add to your life insurance premium costs. If you’ve had cancer, you’ll also pay more.
In comparison, some life insurers aren’t as concerned about asthma, hypertension, digestive problems, or diabetes if you’re under a doctor’s care.
- If you’re a healthy woman in your fifties and your doctor says, “You’re diabetic,” the life insurance company will review your family history and consider general health factors. If you’re healthy and managing type 2 diabetes, your life insurance rates might not soar.
- Before submitting a life insurance application, get a physical from your doctor. If you’ve got unmanaged high blood pressure or any treatable medical problem, your doctor can prescribe medicine. With luck, your problem can be considered in control.
- If you’ve got a serious condition, seek out an experienced insurance agent to get the best possible life insurance rates.
Life insurance companies also consider your body weight. If you’re obese with health problems, your insurer may penalize you with higher than average life insurance rates.
- Losing weight before you apply for health insurance is the best solution but, if that’s impossible, compare life insurance rates by requesting online quotes.
- In some cases, you’ll learn more about various insurers’ underwriting criteria and identify those that won’t levy the highest penalties for overweight or obesity.
- If you’re overweight and female, some life insurance underwriters rely on unisex height/weight tables. This fact could save you money on life insurance rates.
Life Insurance Rates: Family History and Public Record
All life insurance companies want to know your family medical history. If a sibling has cancer and you’re in good health, or your father died at an early age from genetic colon cancer and you have polyps, your life insurance rates might cost more.
- Take the time to compare life insurance rates to identify the companies with more lenient underwriting standards.
Life insurance companies also use public information to assess risk. If youreceived a speeding ticket in the last few years, the risk of insuring you rises. If you’ve got a DWI or DUI on the record, your life insurance rates will rise. Know that some insurers won’t want to assume your risk at all even if the incident occurred five or 10 years ago.
A job or hobbies can increase your risk:
- If you drive a truck cross-country or you’re a traveling salesperson, your profile might seem risky to a life insurance company.
- If you’re a NASCAR racing enthusiast, you will be charged higher life insurance rates than the insurer’s most cautious clients.
Life Insurance Rates: Credit History
Your credit history can prompt life insurers to charge you higher life insurance rates. A bankruptcy filing within the last five years or a high debt ratio can mean higher life insurance premiums.
Not all life insurers check your credit. Ask your financial advisor about the companies that don’t use credit to establish your premium rates. After you purchase life insurance, consider credit counseling to improve your credit score, stress level and life outlook.
Life Insurance Rates: Medical Exams
If you have a life insurance policy in place but you’ve lost weight and stopped racing cars, shopping for new life insurance can make good finance sense.
Applying for a new or larger life insurance policy can require a visit with the insurer’s doctor. Consider these steps and stay calm:
- Lower your total cholesterol by fasting a day before the medical exam.
- Don’t drink alcohol or salty, greasy foods beforehand. Avoid coffee or caffeinated drinks on the morning of the visit.
- Take your prescription medicines to confirm to the doctor that your condition is controlled.
- Skip a heavy workout, too. Torn muscles can elevate your protein and the insurer’s doctor might believe you’re sick.
- Sleep well the night before.
Stay healthy, pay your life insurance premiums on time, and enjoy life.