Permutation And Combination Of A Number Of Factors Decide The Term Life Insurance Rates
You often hear that term life insurance is the cheapest insurance policy in the market. This true only in the following cases:
• You are young, preferably below thirty five or just so.
• When you health condition is prefect and there is no terminal illness
• If you have right body mass index
• You have never used tobacco
• If your life style is moderate
• If you are in profession or your pastime that does not affect your health
Before providing a term insurance the carriers make sure about the insurability. They make sure that you do not die within the term period or the collect enough premiums before you are dead. That is the reason people who are young and health are readily given a term life insurance are very low insurance rates as the chance of them dying during the term period is very less or the insurance will collect enough money before they pay the benefits.
People who belong to the Preferred Best category are the healthiest among the general population and they too are offered low rates because they have very little chance of dying within the term. These people do not have any kind of adverse medical history (personal or familial) neither are they under any kind of medication now. However, if they use tobacco or if their occupation exposes them to bodily harm, they will be charged at a higher rate.
In fact, not one factor, but permutation and combination of a number of factors decide the term life insurance rates. One factor that has a very adverse effect on these rates is the use of tobacco. Nothing raises the term life insurance rates like tobacco use because use of tobacco invites many terminal diseases and so if you do not have one now, you may grow one sooner or later. Term life insurance carriers do not want to take the chance and so they generally charge at a 2.5 times higher rate. However, there are some life insurance carriers that look at the smokers a little more sympathetically than others do. Therefore, if you are a smoker, try to find those carriers who will take your case more objectively and provide affordable rate.
Base on the intake and usage of the tobacco content insurance companies categories the people. People who have lesser intake of tobacco will certainly have lesser insurance rate than those who have higher intake. Also there are few insurance companies that provide less insurance rates for people who have good health condition in spite of smoking. Also people who have quit smoking will be considered as non smokers and will get very low insurance rate. But the time frame a person needs to be away from smoking or using tobacco before being considered is solely dependant on the insurance carrier and their guidelines.
What happens if you say that you are a non-smoker, while you are actually one? Even if you are a moderate smoker, you will definitely be caught during the mandatory medical test. A test that measures cotinine, which is a byproduct of nicotine and remains in the blood for quite sometime will expose your nicotine intake. If you can somehow wriggle out of the test and die from some tobacco related disease within two years, claims may be denied or at least challenged.
It is always advisable that you do not hide any information from the insurance company before buying a policy. Try to give as much of accurate information as possible, not only about your tobacco usage but about everything. Just to save few dollars don’t tell or hide any information. As this might lead into a situation were you family can be denied the benefits of the lie and they have to fight for the benefits. This is not what we want to give our family.
Before buying a insurance policy spend some time shopping to choose the right policy. If you’re are a smoker then this becomes more important. This is because each insurance policy has their own rules and regulation when it comes to providing an insurance policy for smokers. So if you are smoker then you have to pay higher insurance rates, but how much higher depend on the insurance and the policy that you choose. Therefore try analyzing the market and receive as many quotes as possible and compare and choose the one that best suits your needs.
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