Life Insurance Rates

People like getting good deals for their money regardless of what they are purchasing. With life insurance, the best way for someone to save money is by comparing rates offered by different life insurance providers. This is a little different from comparing the offers from different grocery stores, for example. For starters, numerous different factors go into calculating life insurance rates. These factors range from an individual's medical history to their present state of health as well as their age and whether they are a smoker.

Life Insurance Costs are Based on Rate Classes

When someone applies for life insurance, the insurance provider will categorize him or her according to a particular rate class. The applicant's medical history is what will determine the rate class.

A rate class is a tool insurance providers use to categorize applicants. The underwriter places applicants into different rate classes based on how long they are likely to live; in other words, the insurance provider bases the rate class on the likelihood of a payout. Many of the factors that help the underwriter to place the applicant into a particular rate class have to do with the individual's lifestyle.

The factors that place individuals into high-risk rate classes include:

• Overweight, obese, or diabetic
• Current smoker or smoking history
• High blood pressure, cholesterol, or hypertension
• Certain illnesses or diseases run in their family
• A poor driving history

Some life insurance providers consider the applicant's credit score when determining an appropriate rate class. The idea behind this is that low scores indicate that the individual is less responsible; the fact that they are less responsible means that they present a greater risk to the provider.

The applicant’s line of work may also place them in a high-risk rate class. If the applicant works on an oilrig or on a fishing boat, the underwriter will have to take this into account when determining their rate class. If an applicant has a healthy lifestyle and a job that is relatively risk-free, they will probably be classified as a lower risk and thus will pay a lower rate for their life insurance.

The individual who is shopping for life insurance has two options: one is to apply for a life insurance policy that does not require them to take a medical exam. The other option is to get a policy that requires them to have several medical tests performed, including:

• Blood testing
• Urine testing
• Electrocardiogram
• X-ray

The company will place the applicant into a rate class based on the results of these tests.

How Applicants Can Get Lower Life Insurance rates

It is possible for an individual to get lower rates by making a few simple lifestyle changes. These changes include shedding some weight and not smoking anymore; they should also eat a healthier diet and get more exercise. Making these changes can bring their blood pressure and cholesterol down to healthy levels. By taking these steps, it is possible to move to a better rate class and bring life insurance rates down significantly.

Another way that an individual can get lower rates is by spending some time researching life insurance rates online. They should carefully investigate the offerings of all the life insurance providers they are considering. They should find out as much as possible about what each company provides to its policyholders and how much they expect to be paid.

Some of the resources that may be used for this research include Standard & Poor's and AM Best Company. They can use these websites to look up the solvency of each life insurance provider on their list. The AA or A ratings given by these two credit rating agencies designate the companies that are in the best positions to fulfill their obligations to policyholders.

Finding Life Insurance Rates on the Internet

The Internet has many different resources for researching a variety of different areas, as the subject is widely covered. At LifeInsurancePlans.com, consumers shopping for life insurance coverage will be able to find out everything they need to know about a policy, in addition to receiving multiple quotes for reasonably priced life insurance. Simply provide some basic personal information in our easy online form, and you’ll have the ability to compare multiple quotes from various life insurance providers quickly.