Life insurance is a topic that some people like to sweep under the rug. But, no matter how you try to delay looking at it eventually you will…and hopefully before it’s too late. Most people don’t like to talk about death or face the fact that it’s going to happen one day or another. Simply put, getting a quote for life insurance isn’t as hard or daunting as you might think.
If you never bought life insurance before it can be a little confusing. Here are a few tips that can help steer you down the right path. When you get a quote you will need to provide some information about yourself. This includes your height, weight, health, family history, financials, and a few other things, but these are the most important. The factors that will make or break your rate will be your heath conditions, height, weight, and family history.
Your health conditions, weight, height, and family history will determine your rate class. Typically there are preferred best, preferred, standard, and table rated policies. Each company is different and there may be another class in between what’s listed, but this is a good guide to compare with. Now, let’s determine where you might fall in with the underwriters. The preferred best rating class is typically for those that take no medications and have no major health issues (such as mental issues, depression, anxiety, heart problems, diabetes, transplants, asthma, cancer, etc…). Then preferred candidates typically may take 1 or 2 medications to control blood pressure or cholesterol but still have no major health problems. Now, standard ratings are for those that take multiple medications and might have 1 major health issue that’s not life threatening, and it’s stable (this can be people with mild depression that take 1 medication and have been hospitalized or suicidal). Last are your table rated policies. This rate class is typically for those that are not healthy and have a major health problem or two. If you apply for life insurance and you get a table rated policy, the chances aren’t good that you can get a better rate elsewhere. Most people get offended when they get table rated and decline the policy only to have it come back and haunt them in the long run. Just like you have a credit score and financial institutions keep track of you and communicate your information with each other, so do life insurance companies. If you get rated or declined, other life insurance companies can see this information and may reject you or offer you a policy at a higher rate than what you were previously offered.
To get the cheapest term life insurance you will need to be healthy, a non smoker, fall into the right height and weight category, and have a clear family heath history of major diseases or illnesses. If you have that you will get the best rates for life insurance and have your choice which company you wish to do business with.
