Life insurance rates are a reflection of the risk each policyholder presents to the insurance company.  Life insurance is based on the concept of sharing risk. Here is how life insurance rates are determined:

Life insurance companies concerns: The insurance companies are looking at health risks that one’s physician looks for. Use of tobacco, high cholesterol, cholesterol ratios, high triglycerides, one’s height/weight ratio, history of diabetes and any condition or activity that could decrease a person’s life span.

How does the insurance company determine your health category: Depending on your age and the amount of insurance applied for, different questions are asked. For smaller amounts of insurance at younger ages, the insurance company will ask about your medical history. Sometimes, a physical exam is required and includes some testing and lab work. Also, you give permission to the insurance company to review your medical records.  Based on your health history, medical exam and other factors, the company then places you in a rating class. Each of these categories has a different rate, further modified by your age and gender.  If you have had some medical challenges, you may still be offered insurance with an extra rate. This is called “rated” or “impaired risk” in the insurance industry.

How to lower your insurance rates: First, shop well around. Get quotes from numerous companies. Each insurance company determines what comprises each rating class.

What do if you know you have a health history that may affect rates: Communicate your history to your insurance agent about the difficulty when you first discuss life insurance policies. Experienced insurance agents know that some life insurance companies charge lower rates for certain medical conditions than others.  Therefore, they will look for a company that may raise its premiums less or not at all for that particular condition.

Insurance underwriting is not an exact science: Not every life insurance company looks at situations in the same way. By screening the people who apply for insurance, rates are kept down. This process of screening and reviewing who gets what rate is called underwriting.

 

Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance. 

CONTACT COSMO

GET A LIFE INSURANCE QUOTE NOW

LEARN MORE ABOUT LIFE INSURANCE

Posted 7:00 PM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015


View Mobile Version
Facebook
Twitter
LinkedIn
Blog
Google+
© Copyright. All rights reserved.
Powered by Insurance Website Builder