Everyone knows how life insurance works, you protect your family in the event of your passing by paying a premium to ensure a determined sum of money be paid out to your family. This amount will ensure that their standard of living and financial status stays in tact after you are gone. This all sounds very morbid but it is important and responsible of you to consider. When researching life insurance you will see there are many types available, from many different companies and there will be many factors that determine your premium amount at each one. Besides your age, your health is probably the next important factor that all insurance companies consider when pricing out your policy. Please read below to read why this is true.
Life Insurance companies want to make money like any other business. Therefore if someone is healthy, that means that they will make more money from a customer’s premium because they will most likely live longer. Healthy people are attractive to them but it doesn’t mean they will necessarily get a discount. If you are unhealthy than you will most likely see your premium go up because it is a known risk factor for them that they are taking a gamble on. For example, if you have a family history of heart problems or cancer than your premium will probably be higher. Particular medical conditions are a red flag for life insurance companies. Conditions such as type 2 diabetes, high cholesterol, high blood pressure are all examples of these red flags. You may find it hard to find an affordable policy if you currently have these issues or have family history of them. It is also know that your body type, or bmi can be a cause for your rate to go up. Again, if you are in shape than statistics show you will live longer or be less likely to suffer from a health scare.
You need to make sure your are in good health if you want to save money on life insurance. You can even go onto nerdwallet.com and they will give you the difference.
How do Life Insurance Companies determine your Health?
When you decide on a Life Insurance Policy you will have to do a number of things. First you will have to fill out a lot of paperwork and answer a lot of questions about your lifestyle and health history. Not only will you have to supply them with information, they most likely will require a health exam to confirm your current health situation. Typically a physical and a general blood test is done in order to determine this. Now there are some companies that offer No Medical Exam Life Insurance but it may not be the most economical decision as I’m sure you are paying for them to turn a blind eye to your current health.