Term Life Insurance Articles
How Physicals Determine Your Life Insurance Premiums And Rates
2010-09-29
Life insurance premiums vary greatly for Americans. For those that purchased policies early or have very little in the way of physical issues, a life insurance premium can be quite reasonable over the short or long term. For those that are over a certain age-often 60-or who have medical issues which could result in a premature death or serious complication leading to death, life insurance premiums can vary from the simple and small all the way to the almost unreasonable. While for many it can appear that insurance companies are simply being random when it comes to assigning rates and premiums, there is in fact a method that almost all companies use. It begins with what is known as a "mortality table" that predicts the age at which a typical American will die, based on average lifestyle. From there, insurance companies will use what are known as insurance physicals in order to further assess the exact rates they wish to charge.
An insurance physical may not be required by all companies, and will often only be required when an applicant is over a certain age or has a pre-existing medical condition. In some states, these physicals are not permitted without client consent, and cannot be a reason for refusal of a policy. No physical will mean higher premiums, however, if one is requested and refused. Typically, the purpose of a physical is to check for overall health as well as assess the severity of any pre-existing condition or the possibly of an emergence of a hereditary one. It is also common that insurance physicals cannot be administered by a family doctor but must instead be done by a paramedical.
This paramedical will be in the employ of the insurance company and is often able to come to a client's home or work to perform their tests. These will include general heart rate, blood pressure and physical measurements. In some cases where the policy being requested is of high value, a company may request an EKG or other more extensive testing so that they can have a better picture of just where the health of an individual lies. Once the tests have been completed, a company will then assess the overall health of a client against the typical mortality table and create a premium based on the risk they represent. If the client has a greater chance of dying early than an "average" American, they will be charged more.
While insurance physicals can lead to higher life insurance premiums, they are often non-invasive, simply testing that can be done at a client's convenience, and can in some cases lead to lower overall rates.
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Life insurance premiums vary greatly for Americans. For those that purchased policies early or have very little in the way of physical issues, a life insurance premium can be quite reasonable over the short or long term. For those that are over a certain age-often 60-or who have medical issues which could result in a premature death or serious complication leading to death, life insurance premiums can vary from the simple and small all the way to the almost unreasonable. While for many it can appear that insurance companies are simply being random when it comes to assigning rates and premiums, there is in fact a method that almost all companies use. It begins with what is known as a "mortality table" that predicts the age at which a typical American will die, based on average lifestyle. From there, insurance companies will use what are known as insurance physicals in order to further assess the exact rates they wish to charge.
An insurance physical may not be required by all companies, and will often only be required when an applicant is over a certain age or has a pre-existing medical condition. In some states, these physicals are not permitted without client consent, and cannot be a reason for refusal of a policy. No physical will mean higher premiums, however, if one is requested and refused. Typically, the purpose of a physical is to check for overall health as well as assess the severity of any pre-existing condition or the possibly of an emergence of a hereditary one. It is also common that insurance physicals cannot be administered by a family doctor but must instead be done by a paramedical.
This paramedical will be in the employ of the insurance company and is often able to come to a client's home or work to perform their tests. These will include general heart rate, blood pressure and physical measurements. In some cases where the policy being requested is of high value, a company may request an EKG or other more extensive testing so that they can have a better picture of just where the health of an individual lies. Once the tests have been completed, a company will then assess the overall health of a client against the typical mortality table and create a premium based on the risk they represent. If the client has a greater chance of dying early than an "average" American, they will be charged more.
While insurance physicals can lead to higher life insurance premiums, they are often non-invasive, simply testing that can be done at a client's convenience, and can in some cases lead to lower overall rates.
