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There are two main factors that influence the premium rates policy holders have to pay for life or health insurance. The first is a person’s general health or family medical history, and the second is the age of an individual.
Your Age & the Cost of Your Premium Although it is not possible to calculate the exact difference in premium rates that will be charged, we do know that a healthy 20-year-old policy holder and a healthy 70-year-old will pay different rates; the older individual will pay more than a younger person. Actuaries use mathematical algorithms to determine the risk of death for individuals in certain age groups. Your Health & Your Premium Rate Your family medical history and general health will play a big part in how much you end up paying for your life insurance and health insurance premiums. This is why most life insurance companies require applicants to provide urine and blood samples when they apply for an insurance policy. Such tests are used to determine if an applicant has any pre-existing medical conditions. Licensed professionals visit the home of insurance applicants in order to collect urine and blood samples. They will also require you to complete many health-related questions to determine the status of your health. You will most likely need to answer questions that concern diabetes, high blood pressure, heart disease, cancer or any other serious health condition. Guaranteed Issue life insurance If you don’t want to undergo any type of medical examinations, you can apply for guaranteed issue life insurance. This type of life insurance policy provides coverage for healthy individuals without requiring them to submit any urine or blood samples. Applicants still need to answer certain health-related questions. Insurance companies make a general risk assumption for applicants, but guaranteed issue life insurance policies provide a maximum death benefit. These often range from $10,000 to $50,000, depending on the insurer. Healthy individuals will pay less for standard term insurance policy premiums than a guaranteed issue life insurance policy. There is no point paying extra for the additional risk assumed by your insurance provider if you are in good health. If you don’t have the time or desire to undergo any medical examinations, you can often still obtain life insurance coverage with a guaranteed issue life insurance policy. However, you need to be aware that your insurance policy may be voided and no benefits paid out if your insurance company discovers you lied about any questions on your application form. Many factors such as your age and your health greatly affect the premium rate of your health and life insurance. You can purchase a cheaper standard life insurance policy that requires a medical examination or pay higher premiums for guaranteed issue life insurance where you only have to answer health-related questions. Hereditary diseases or medical conditions may be unavoidable. However, you can take steps to remain as healthy as possible if you want to lower your life insurance premiums. |
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