Life Insurance Online Rating

Insurance2If you are getting life insurance for the first time or thinking about finding a new policy with a lower premium, it pays to know what criteria insurers use when setting life insurance rates and what you can do to improve your chances of getting the best price. Insurers ask a lot of questions and do medical tests when you apply for coverage to determine how much of a risk you are to insure. The bigger the risk you are, the higher the rate you will have to pay.

Factors that affect rates:

Your age and gender. These two factors have the biggest impact on your insurance rate. Clearly, youth has its advantages when it comes to getting a good life-insurance rate. And women usually get lower rates because they have longer life expectancies (giving the insurance company more years to collect premiums before it has to make a payout).

Your smoking habits. If you smoke, expect to pay a lot more for life insurance. For example, a 40-year-old cigarette smoker will pay triple the rate of a non-smoker. The best way to cut your rate, if you are a smoker, is to stop smoking for a year or more. Some companies require you to be smoke-free for three or five years to get their best rate.

Your health. High cholesterol is a strike against you. Cancer is an even bigger strike. However, insurers consider diabetes, hypertension, most digestive disorders and asthma as minor problems if you’re getting proper medical care for these conditions.

Your weight. Because obesity and several other health conditions go hand in hand, insurers take your weight into consideration. For example, a 6-foot, 205-pound man usually can qualify for the best rate. But a few more pounds would push him into a higher rate. The weight ranges to qualify for the best rates vary from company to company.

Your driving record. If you are breaking traffic laws, you are more likely to be involved in a life-threatening situation. And that makes you more risky to insure.

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