To understand your life insurance rates, it helps to understand the underwriting process. This involves a qualified insurance professional assessing the risk of an applicant. In terms of life insurance, the risk you pose to an insurance provider has to do with when you’re estimated to die. Grim, yes; but true nonetheless.
A healthy individual who is likely to live a long life can continue making premium payments for many years, while an individual with a chronic illness may be more likely to die sooner, which means the insurance provider profits less off this second example. So, your life insurance policy cannot be written—and a premium rate cannot be offered—until you’ve gone through the underwriting process. You may have experienced a similar process if you’ve applied for a home mortgage or personal loan, though the life insurance version will be based more on your health.
In order to assess your risk, underwriters must gather a lot of information from you. This may include:
· Your medical history
· Your family’s medical history
· Vitals like age, height and weight
· Your occupation
· Your driving record
· Your hobbies and habits
For some policies, you may also be required to undergo a medical exam (funded by the insurance company in most cases). Your blood may be drawn to get cholesterol numbers and other readings that provide a clearer picture of your internal health.
These factors, among others, are then used to create a customized life expectancy. The longer that is, the less your premiums are likely to be. After underwriting, you will be sorted into groups, known as rating classes. The people in your group will have a similar risk level and will pay a similar premium.
How will you qualify? Call Salzberg Insurance Agency at (877) 757-6081 for more information on Norfolk life insurance.