Over the last decade, insurance activities and interactions have increasingly become multi directional. Life insurance quotes companies are taking a host of precautions to ensure that they won’t be paying more than you paid in.
The insurance companies have found their answer in actuaries which provides improved and closer collaboration and faster decision times.
Let’s start what sort of risks they are primarily interested in or simply on what basis your premium is calculated
Based on health risks- Insurance companies are interested in your health risks like consumption of tobacco, cholesterol, diabetes, and other conditions that are inked to the poor health and early death. Cheap life Insurance companies serve as a cost saving model provided you are in a perfect state of health.
To manage your risks, insurance companies will designate your status based on health, age, gender, which will in turn determine how much sum you need to pay as a premium on life insurance.
To calculate your premium, insurers may ask you following questions
They will ask you about medical history and most likely they will ask you to undergo certain tests. When filling a questionnaire, be careful about what you write. It should be truthful and straight. If you lie and companies find out, it can annul the policy.
Supposedly, you say that you are a non smoker, but end up consuming two packs a day habit- the life insurance company will deny the benefits.
There are certain risk factors that are beyond the control like age and gender. It is a noted fact that woman live more than man, so they have lower rates of insurance whilst men tend to have a shorter life span, so they end up paying a lower rate on the annuity.
Your age affects the premium rate. If you are young you are likely to live for a longer period, hence; insurance premium tends to be lower. It is for this reason we should purchase a policy at a young age. Elderly people are quoted at a higher premium rate because they are likely to die much sooner as compared to the former one. The other factors that life insurance companies take into account are
For most people before buying life insurance policies, insurer will ask you to undergo a physical examination. A medical practitioner will check your weight, blood pressure, and other vital signs; he will perhaps take your blood or urine sample. In many cases, he will perform extensive tests like x ray or EKG, as it might be required to depict the signs of disease. Your blood and urine samples will indicate any sign of disease, including dangerous diseases like HIV virus, cholesterol, or any premature indications of disorders like diabetes, kidney, hepatitis, and other problems. The medications will also be screened to check the presence of nicotine as well as for other illegal drugs.
Each insurance company will determine their own rates and it will categorize buyers into a preferred plus buyer, sub standard buyer or somewhere in between. If you think, you have a risk factor; it’s your duty to inform the insurance agent. Informing the agent doesn’t mean that you are going to fall in the trap of high insurance rates. Talking with your insurance agent may work in your favor because these persons can help you to find out a company that won’t charge you higher rates for those risk factors.
If it’s a controllable risk factor like what, your doctors are urging you to do, you can eliminate that factor. For instance, giving up the habit of smoking, losing some weight or taking the blood pressure and other medications regularly will decrease the premium and will provide you improved health.
If you think, your health is improved, you can alert the insurance companies, and see if they can trim down the premium. Don’t give a second thought to it, insurance companies will lower down the premium if you give the evidence of improved health.
How to obtain quotes
Now that you know on what basis your life insurance premium is calculated, the next step is how to obtain the quotes. You can obtain cheap life insurance quotes on online basis. Here are some tips
Research well- Obtaining cheap life insurance quotes is not everyone’s cup of tea. You need to research well in the insurance market.
Today many insurance companies are increasingly using cheap life insurance quotes to woo the customer and improve their sales. Don’t get trapped into it; consult some financial expert or adviser.
Thus, your insurer will take into account all these factors to determine how much cover you need.