| Term Life Insurance is in essence a temporary | | | | Smoking - Using tobacco affects your life insurance |
| contract. This means that this type of insurance will | | | | rate adversely. Smoking ruins your health and |
| expire after a specified term, usually between 10 to 30 | | | | increases the risk of cancer and premature death. As |
| years (though this can vary with individual providers). | | | | a result, your premium is adjusted accordingly. There is |
| Unlike a whole life insurance policy, term life insurance | | | | no point in lying to the insurance company and saying |
| does not accrue any cash value. Due to this, there are | | | | you don't smoke, if you really do. In case you do die |
| lower monthly premiums as you are in effect only | | | | from any smoke related cause such as lung cancer, |
| paying for the 'pure' insurance, and not using a life | | | | the insurance company is fully within its rights to deny |
| insurance policy as an investment or savings. | | | | paying any benefits to your family. Even if you are a |
| There are also several factors that are taken into | | | | smoker or suffer from certain health impairments, you |
| consideration when you are evaluated for coverage | | | | can increase your chances of getting a good rate by |
| by a life insurance company. Basically, it comes down | | | | shopping around for life insurance. Rates can differ |
| to the fact that no one can predict when you are | | | | from company to company and some company may |
| going to die. Keeping this in mind, an insurance | | | | look more favorably on smokers than others. Shopping |
| underwriter's job is to study factors such as your | | | | around will help you to find the best policy at the most |
| current health situation as well as your family medical | | | | affordable rates. |
| history, any ill health in the past, and even your driving | | | | Health - A reputed insurance company will study your |
| records and criminal history, if applicable. Most | | | | medical history and current health status in detail. Even |
| companies use something called as Mortality Tables to | | | | common health conditions such as diabetes, obesity, |
| determine the applicable cost of your life insurance. | | | | and high blood pressure can lead to higher premiums. |
| These tables use a wealth of statistics to predict life | | | | You also have to undergo a medical exam, paid by |
| expectancy by using three main factors - age, gender, | | | | the insurer when applying for any life insurance policy. |
| and whether or not you smoke. These numbers will | | | | During the exam, the doctor will also ask about your |
| ultimately result in a decision about whether you can | | | | family's medical history. If there is any hereditary |
| be insured and what premium you will have to pay. | | | | pattern of ill health, this will be taken into consideration |
| Age - Age is one of the main factors in deciding the | | | | when fixing your premium rate. |
| rate of your life insurance. You will pay a lower | | | | Based on the above factors, there are various |
| premium, the younger you are but will also end up | | | | categories of Term Life Insurance Rates available. |
| paying for this premium over a longer period of time. | | | | Keep in mind, different life insurance companies may |
| Buying your insurance later in life will garner higher | | | | have different names for these terms but they |
| premiums but to be paid over a smaller time period. | | | | generally represent the how a life insurance company |
| This is because the older you are, the more likely you | | | | would qualify someone: |
| are to pass away and due a claim on insurance | | | | Preferred plusTerm Life Insurance Rate: To qualify for |
| benefits which will be paid to your beneficiary. | | | | this rate, you must be in excellent overall health. You |
| Gender - To determine if you qualify for the lowest life | | | | cannot have a life threatening profession or have any |
| insurance rates, gender is another factor taken into | | | | history of drug or alcohol abuse. Preferred Term Life |
| consideration by life insurance underwriters. This is | | | | Insurance Rate - You cannot use tobacco in any form |
| because statistics show that there are higher numbers | | | | to qualify for this rate. There can be no history of drug |
| of males that die at a particular age than the number | | | | or alcohol abuse or any engagement in any hazardous |
| of females who die at that same age. Insurance | | | | activities. |
| companies therefore take a bigger risk when insuring | | | | Standard Term Life Insurance Rate - This rate applies |
| men, which will result in higher premiums. | | | | to people with some minor health issues in their lifetime. |
| Occupation - Your job and even your hobbies can | | | | These could include those who are 50 pounds |
| affect your life insurance rate. There have been many | | | | overweight or have cholesterol levels of over 260. |
| instances where you qualify for a policy but may be | | | | Substandard Term Life Insurance Rate - For those |
| rejected simply because of the nature of your job. If | | | | with more than minor health problems, substandard |
| for example, your profession needs you to travel to | | | | rates will apply. Most companies will add to these |
| dangerous countries; an insurance company may deny | | | | premiums depending on the risk factors involved. |
| you coverage. Your hobbies can also affect your | | | | Now that you know on what basis your premium rate |
| premium. If you indulge in extreme sports such as | | | | is fixed, it will be easier for you to decide upon which |
| skydiving or rock climbing, you will have to pay a higher | | | | policy works best in your favor. Shop around, clarify |
| premium rate or may even be denied a policy. You | | | | any doubts and always ask your agent questions |
| may still have the option of applying for the policy if | | | | about how to get the best rates applicable on your on |
| you are willing to pay higher premiums in order to | | | | life insurance policy. |
| provide for the extra risks involved. | | | | |