Life Insurance Rates and Premiums

It is common knowledge that life insurance rates are quite cheap if you are young and in good health. But, the reality is that does not include the rest of the population. Many people have some sort of health issue of one sort or another. When you purchase a policy, there are always a series of questions about your health. Health problems are called risks in insurance terms. In order to receive the best life insurance rate, these risks have to be considered. Some of the risks that will affect your premiums are as follows:

You can pay as much as 50 percent more in premiums if you are morbidly obese, take prescription heart medications, diabetic or have a chronic illness.

Smokers, a danger job occupation or extracurricular sports enthusiasts can pay even more than the 50% due to the danger of these things.

If you are diagnosed with cancer, you won’t even be able to get life insurance.

Some people think that if they don’t tell the truth on a life insurance application that they will not be caught. Think again. You very possibly could get by and pay for your policy a year or two. Then, let’s say you had cancer and when you die it is determined that you actually had cancer before the policy was written. Insurance underwriters will check your health records to determine the cause of death before they pay out the insurance benefits. In this case, a physician may have listed on your records that you had had cancer for 4-5 years. Your policy is only two years old. The policy will not pay out because of a negative statement on your original application. You have then paid two year’s worth of premiums for nothing. That will not help your family in any way. This is why it is crucial to be truthful at all times, even if it does mean a higher premium.

Some insurance companies require a health assessment before issuing a policy. This is not because they don’t want to insure you, it is a means of determining the level of risk you may be and set your premiums according to the risk appropriately. Some illnesses and conditions can be treated effective with medications and lifestyle changes and underwriters know this and will those issues in mind when underwriting the policy. Although, there will be some cases where they choose not to insure someone, just as in the case of cancer.

Because of health risks, it is very important to shop around because one company may charge more than another company or one may choose not to insure you. Don’t give up, keep looking until you get several quotes and choose the one that is best for you and your pocketbook. Look for the best life insurance rate, which will include the best term life insurance quote in addition to the best permanent life insurance quote.