Factors That Determine Insurance Life Rate

Getting a life insurance policy is a good investment. It protects your family even when you are deceased. Apart from knowing the different life insurance policies like term or permanent insurance, you also need to know the rates for each type. Insurance life rate depends on various factors. Knowing these can help you determine the rate you need to pay. It can also help you take a few steps to get lower rates. Go ahead and learn about the factors that go to make up rates of life insurance:
Birth date
Health status
Nicotine use
Occupation
Hobbies
Medical history

When you ask for a life insurance quote, - whether online or through an insurance agent - most companies will want information about the above points. Once you supply them with these details, they will give you a quote. So, let us see how these factors affect insurance life rates. A young person will get a lesser rate for they are considered to have a longer life expectancy. So, your birth date determines whether your insurance rates will be high or low. An elderly person is said to be at a higher risk of dying early and can also have some medical conditions.

All insurance companies will ask for a complete medical exam to be undergone before a policy is issued. They will have to submit blood and urine samples, give their height and weight, and take X-rays and ECG to determine their health status. All medical conditions like AIDS, high blood pressure, high cholesterol, diabetes, and heart disease will be revealed at this point. This will have a serious effect on your insurance rate. Hence, take good care of your health and know all treatable medical conditions before applying for life insurance.

Of course, it is still possible to get a policy without attending any tests. This type is called life insurance no medical. It is available for both insurance categories. However, even for this, the insurance company will ask a few health related questions and cross check medical records before issuing a policy. Still, it is possible to get insurance coverage. But the fact is, insurance life rate for this plan will be much higher than that for one where a medical test is undergone.

Smokers and alcoholics will attract higher insurance rates since the mortality rates among such people are very high. Insurance companies will only calculate rates after determining a persons nicotine use. So, if getting low insurance rates is important to you, then quit these habits at least six months before applying for a policy and you will surely get low rates.

Risky occupations like miners, fishermen, construction workers etc. are all at risk of dying due to an accident and hence will attract higher insurance rates. Similarly, those who love danger sports like sky diving, bungee jumping or deep sea diving etc. are also risking their lives while enjoying these sports. Insurance companies are reluctant to provide coverage for these people or charge very high rates. Many illnesses are hereditary, so, insurance providers will ask your family medical history when you ask for a quote.

Universal life insurance is a hybrid form of whole and term life insurance. It was introduced in the late 1970s as a flexible option to both these policies. When you invest in universal life insurance, you will be paying premium like all other plans. A part of this is invested in growth schemes and your premium value and interest is what determines the cash value you have in your account. The cash value is the portion that supports death benefit. As long as your account has enough cash value, your policy will exist. Once there is no cash value, it will cease to exist.

A great benefit of universal life insurance is its flexibility. The policy holder will have the flexibility to pay more or less premium depending on his personal financial situation. If he wants to maintain the policy for a short period, he can pay more premium amounts. On the other hand, if he has some financial constraints, he can reduce premiums or even skip payments. Of course, there are risks involved with this policy, so know them before investing in it.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance term life and no medical life insurance, visit his site today.