How Are Life Insurance Rates Calculated?
Underwriting is an intricate and meticulous process during which a person is declared eligible or not for insurance. No medical exam life insurance has the quickest and the simplest underwriting process and eligibility requirements.
At the end of this process, you will know if you were accepted or not, plus you will know how much you will have to pay. There are several factors that influence the way in which life insurance rates are calculated.
1) Body Mass Index. This index is a measure of body fat based on your height and weight. It applies to adult men and women. The computed results will determine if you are underweight, overweight or you have a normal weight. Insurance companies use the BMI to rate the potential client. Persons that are overweight receive lower ratting, since high levels of cholesterol are associated with cardiovascular diseases and disorders.
2) Medical exams. Asking for medical exam is a common practice for almost all insurance companies. Medical results will provide concluding results regarding your health status and will help the insurer determine a fair price. Typical exams include blood tests, urine tests, x-rays and EKG. Results will determine the presence of certain proteins in your body or the damage left by some vices, like smoking too much.
3) Proof of income. Not all companies ask for income records or other similar documents, but some insurers want to be sure that you will be able to pay the premiums.
4) Age. Besides health, age in one of the most influential factors and rates depend on it. As you can imagine, persons that are older will have to pay more.
Obtaining life insurance quotes should be a top priority before applying for life insurance. Some of the forms ask the same questions and the input data will help you get accurate results. Of course, you will get average prices, the final price will be determined by the company after a meeting.
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