If you need life insurance for just a few years, you may not want to purchase a short term plan.
A fact that most people do not know is that buying a 10 year level term policy is almost always cheaper than purchasing a 5 year policy. Why is this the case? Very few companies offer 5 year plans so there is not a lot of competition. When getting a quote from an insurance website, you would have no way of knowing this. So how does someone find out how they can save money by purchasing a longer term plan? By calling an independent life insurance agent.
Remember, your independent life insurance agency knows the ins and outs of the business, and can help save you money.
Filed Under:
Life Insurance,
agent,
health history,
height,
paramedic examination,
preferred,
premiums,
rating class,
standard,
super preferred,
table ratings,
weightJan.21, 2010
(Read part one of this post here.)
Life insurance policies that require a paramedic examination will cost less than those that don’t require one. In a paramedic exam, the examiner will come to you, and take a detailed health history, your height, weight, blood pressure will be measured. A urine and blood sample will be taken. You may also have a portable EKG depending on age and amount of insurance. The insurance company will pay for this exam an
d the results will help determine your rating class. You can always get a copy of your lab results from this exam.
Applicants for life insurance are given a rating class by the company. This class determines the premium you will pay. As explained before, many factors go into determining this rating. These classes are known as super preferred, preferred, and standard, with super preferred being the least expensive. After standard there are table ratings – from Table A (or 1) to Table P (16) although most carriers will decline you after Table 8. It is important to tell your agent all of your medical information so they can present it to the insurance company in the best light and be as truthful as possible! Once again, this is where an independent life insurance agent is your best resource. They know the ins and outs of which company will look at your issues most favorably, and can therefore help you obtain the best value. They can do your shopping to find your best choices. (A reputable agent will happily show you the quote so that you know you are getting a fair deal.)
One of the most important factors involved when it comes to purchasing life insurance is the cost, and understandably so. After all, it is the amount of money you will be paying for a policy, and most people want to be sure they’re getting the most for their money.
So how are rates determined? By underwriting. Underwriting is a process of testing and assessing an individual applying for life insurance. Many factors affect the underwriting of a potential insured from age, build and any medications they take as well as illnesses they may have or family history. Cigarette smoking, high cholesterol, and level of risky activity are all taken into account when underwriting. But underwriting is not a cut-and-dry science, as each life insurance company sees things differently. This is exactly where an experienced independent life insurance agent can be beneficial. An independent agent should be familiar with which companies look more favorably on these issues. This allows them to match you with a company that fits your specific health and lifestyle.
