Everyone that applies for life insurance will be “rated” one way or another. If it sounds cold and hard, that’s because it is. If you are generally in good health, you will fall into one of the 4-6 regular health classifications. The better the health class, the lower your premiums.
The two-year contestability period exists to protect insurance companies from financial loss. Life insurance premiums are based in large part on the medical history and lifestyle of the insured. Things like smoking, using other tobacco products, or participation in dangerous hobbies will lead to higher premiums to account for….
When applying for life insurance, you want to pay attention to BMI extremes the most, Underweight and Obese. Life insurance underwriting is the business of assessing risk based on the collective data of millions of people. Those that fall in the extremes are more likely to have additional health concerns. Those are just the facts and what the data says….
Taking those factors into account, Jim should NOT be applying with Company X that showed him the cheapest rates. He needs to be with company Z who will let him slide a bit on blood pressure, provided his weight is very healthy (it is). This company also only adds a small extra cost to account for his frequency of rock climbing….
The job of the underwriter is to guess how long you will live based on your health, behavior, family history, driving history, location, finances, and more. If these factors suggest you will live a long time, you may get a more favorable rating….
A rider is a life insurance provision purchased separately from your standard policy. Most insurance riders come at an additional cost, but they can be used to customize your policy with extra benefits or coverage. Many standard policies offer little customization options aside from….
So we have discussed why NOT to use an arbitrary number. Then how do you figure out the right amount of coverage? Life insurance is meant to replace an income that is lost when a human life is lost. Put very simply…The financial value of that lost life = the right amount of….
Think about it. What is life insurance intended for really? If you die, your beneficiaries will get any assets you have all at once. That likely won’t be enough to last them forever which is why you are purchasing life insurance. To replace the income you would have produced. Since keeping premiums low and saving you money is the goal of this article, let’s talk about the income protection option…..
Life insurance to put it simply, is protection for those who depend upon you financially. If you die prematurely, life insurance products will provide them a sum of money to replace your lost income. You may see….
You purchase insurance for a specific “term” which typically ranges from 10-30 years. This is pure life insurance. You are paying your money (premiums) in return for financial protection in the event of your death. That financial protection comes in….
While term life insurance protects you for a specific period of time (such as 10 or 30 years), permanent life insurance protects you for your entire life, as long as you keep up with the premiums. A permanent policy….
A child rider allows you to add life insurance for your child onto your basic policy. While no one wants to ever think of losing a child, the situation does result in financial consequences along with the emotional devastation….