Affordable Life Insurance Underwriting
Finding a deal on affordable life insurance involves research, but aside from research, consumers can do other things that will ensure the lowest possible quote on life insurance. Taking control of health status will provide consumers with some control over the price they pay. www.ParamountLifeInsurance.com
The best value in life insurance comes from an insurance company that engages in “full underwriting” of life insurance policies. In cases of fully underwritten policies, the insurance company does a great amount of research into a prospective customer before a policy is written. This information is used to determine the likelihood that a policyholder will live for a long time. Accordingly, healthier individuals will be able to get a lower rate than unhealthy people will. Family history is also considered, but if a certain lifestyle is designed to counter any known hereditary health issues, underwriters will take note. A healthy lifestyle includes a list of things people do to stay healthy such as exercise, eating right and avoiding bad habits such a smoking or alcohol abuse. When considering lifestyle choices, underwriters also consider the nature of an applicant’s employment as well as certain hobbies. For example, a logger is more likely to die on the job than an accountant is, and someone who bowls regularly presents less of a risk than an active mountain climber does.
Men and women are both considered a higher risk if they smoke due to the health problems that smokers typically experience. Smokers simply tend to die younger than non-smokers and experience more occurrences of chronic lung diseases. There are some exceptions, but insurers rely on statistical data to make their decisions with respect to lifestyle choices. While they do examine individual characteristics with fully underwritten policies, an insurer will not likely consider a relative who lived a long life while being a smoker as evidence that the applicant will do the same.
Overweight people do not typically garner the same scrutiny as smokers, but insurers do consider obesity as an undesirable characteristic. As long as the applicant is within 20 to 30 percent of ideal body weight, they may actually qualify for a preferred rate. This means that a man who should weight 180 pounds can weigh as much as 234 pounds and still get a preferred rate.
A consumer’s choice of policy will also have a significant bearing on the cost of the coverage. The most basic decisions to be made concerning life insurance relate to the limits of coverage. This selection will have a significant effect on your policy premium. Choosing a limit should be done with a qualified insurance counselor that will examine assets, income, and a family’s expenses. This information will be used to determine how much of a payout will be required to adequately fund a family’s future in the event of death.
After considering how much coverage is required, the applicant should also consider the type of life insurance policy to buy. There are two basic types of life insurance coverage including term life coverage and whole life coverage.
Term life insurance is a lower cost policy that lasts for a specified term selected by the applicant. Once the policy term expires, there is no longer any coverage available.
A whole life insurance policy will cost more, but lasts for the applicant’s entire life, and a portion of the premium is invested over time, which will grow in a specified account that the applicant may draw from.
Searching for a low cost life insurance policy should include research of quality life insurance companies and brokers, but this search should also involve concrete decisions that each policyholder can make that will produce the best results.
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