How Health, Age and Life Style Figure in Cost

Most life insurance will ask for a quick medical exam that will give them an idea of your over-all health. Factors such as weight, blood pressure, major illnesses you may have had or have and family health issues will be among the things insurers will be looking at. Age is another factor as is life style. Generally, most life insurance companies don’t see people surviving much past your late 60’s, according to some studies. The older you are the more premiums you will pay, which is why it is best to purchase life insurance at an early age.

Life styles are also important. If you like to scuba dive, parachute or hand glide, the life insurance premiums are higher. Smoking is one of the biggest factors determining premiums because smoking or chewing tobacco is viewed negatively by life insurance companies and is seen as not conducive to longevity.

Foreign travel is also looked at in determining premiums. Most insurance companies will use the State Department’s travel warnings as guidance when determining premiums or if they will insure you at all, especially if you travel to high risk countries, such as Iraq.

Types of Life Insurance Coverage

After you have answered questions regarding your general age, health and life style, the life insurance agent will place you into a health classification. Every health class has a cost factor involved with it for your age.

1. Preferred Best or Super Preferred: This means you are perfect in that you are not on medications, height and weight are proportionate, no life threatening issues such as high blood pressure or cholesterol and your family history is clear of genetic-prone diseases. They will also check to see if you have a clear credit record, driving record and criminal record.

2. Preferred: You’re not bad except that you may be taking some medications to control something like cholesterol, you may be slightly overweight or your family history indicates problems with genetic diseases such as diabetes.

3. Standard Plus: Slightly above average. Height and weight figure heavily in this as does your family history or you quit smoking only two years ago. Smoking is still a risk as you could still go back to it or you already have slight complications from smoking.

4. Standard: You’re Mr. Average. Most people placed in this category have issues with weight.

5. Preferred Tobacco and Standard Tobacco: Smoking rates are quite high. They will place you in a smoking category despite good health otherwise and will charge a higher premium.

6. Table Ratings: When life insurance applicants don’t qualify for any of the above rate, the life insurance companies will place you in a table rating category. Generally, this is due to issues with having been treated for cancer, having diabetes or qualifying as obese. Table ratings are in the form of numbers or letters, generally starting at Table B (or Table 2) and progress through to H. Rates increase roughly 25 percent for every rung on the table rating ladder.