Term Life Insurance Articles
What Factors Go Into Your Term Life Insurance Rates
2010-10-19
Term life insurance rates are influenced by a number of factors. When determining a term life insurance quote, insurance companies take into account actuarial data. In essence, term life insurance rates are determined by factors that have a significant impact on an individual's life-expectancy. Medical history, habits, hobbies and mental health all play an important role in determining life insurance rates.
One's medical history underwrites insurance policy quotes and rates. Insurance application forms ask prospective customers questions about their cholesterol levels. High levels of negative cholesterol create health problems such as stroke and coronary heart disease and decrease one's life span significantly. Insurance companies also look for past instances of cancer, stroke and epilepsy. All of these diseases dramatically impact insurance quotes. Family medical history also shapes quotes and rates. If a person's family is genetically disposed toward a certain disease, such as cancer or heart disease, then chances are significantly greater that he or she will also suffer from the same problems.
Without a doubt, an individual's routine, hobbies and habits have a significant impact on the length of his life. Cigarettes obviously shorten the average life-span significantly, by subjecting the smoker to a whole bevy of diseases such as stroke, lung cancer and emphysema. It makes sense that questions concerning tobacco use are standard material when a company is formulating a term life insurance quote. But rates are impacted by other life choices. For instance, one's driving record comes into play. Moving violations raise rates. Speeding and running red lights put a person at serious risk. Anyone who has more than one violation in his record over the past three years will be penalized with larger rates. Insurance companies also take into account dangerous sports and hobbies. Bungee jumpers and sky divers should expect to pay more for their term life insurance policies, no matter how physically healthy they might be. One's traveling habits may impact insurance rates, as well. Insurance companies evaluate the danger of different destinations and adjust premiums accordingly. For instance, a person who visits a nation torn by war or terrorists will be considered at greater risk than a person who only visits peaceful countries.
Mental health also is a factor in insurance rates. Those who struggle with depression and use anti-depressants are more likely to commit suicide. Rates are thus raised to accommodate the higher risk. However ,trauma-induced depression is not considered by most insurance companies.
While people may overlook the significance of their medical histories, habits, hobbies and mental health, these factors significantly impact the quality and length of one's life. And these issues ultimately influence the rates offered by insurance companies.
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Term life insurance rates are influenced by a number of factors. When determining a term life insurance quote, insurance companies take into account actuarial data. In essence, term life insurance rates are determined by factors that have a significant impact on an individual's life-expectancy. Medical history, habits, hobbies and mental health all play an important role in determining life insurance rates.
One's medical history underwrites insurance policy quotes and rates. Insurance application forms ask prospective customers questions about their cholesterol levels. High levels of negative cholesterol create health problems such as stroke and coronary heart disease and decrease one's life span significantly. Insurance companies also look for past instances of cancer, stroke and epilepsy. All of these diseases dramatically impact insurance quotes. Family medical history also shapes quotes and rates. If a person's family is genetically disposed toward a certain disease, such as cancer or heart disease, then chances are significantly greater that he or she will also suffer from the same problems.
Without a doubt, an individual's routine, hobbies and habits have a significant impact on the length of his life. Cigarettes obviously shorten the average life-span significantly, by subjecting the smoker to a whole bevy of diseases such as stroke, lung cancer and emphysema. It makes sense that questions concerning tobacco use are standard material when a company is formulating a term life insurance quote. But rates are impacted by other life choices. For instance, one's driving record comes into play. Moving violations raise rates. Speeding and running red lights put a person at serious risk. Anyone who has more than one violation in his record over the past three years will be penalized with larger rates. Insurance companies also take into account dangerous sports and hobbies. Bungee jumpers and sky divers should expect to pay more for their term life insurance policies, no matter how physically healthy they might be. One's traveling habits may impact insurance rates, as well. Insurance companies evaluate the danger of different destinations and adjust premiums accordingly. For instance, a person who visits a nation torn by war or terrorists will be considered at greater risk than a person who only visits peaceful countries.
Mental health also is a factor in insurance rates. Those who struggle with depression and use anti-depressants are more likely to commit suicide. Rates are thus raised to accommodate the higher risk. However ,trauma-induced depression is not considered by most insurance companies.
While people may overlook the significance of their medical histories, habits, hobbies and mental health, these factors significantly impact the quality and length of one's life. And these issues ultimately influence the rates offered by insurance companies.
