The world today has become more comfortable to live in, as compared before. Food has become more convenient to have, places are now more accessible, and even medicines and medical equipment have evolved. Along with these developments, life expectancy also changed according to one’s lifestyle.
The need for life insurance has increased over the years as more and more people realize its value. Because of these drastic changes, insurance companies now have different steps to make when providing rates.
To help you understand the influences of health on life insurance, read on as we will discuss the factors an insurer considers, how to determine if you are healthy, as well as the impacts of pre-existing conditions.
Factors an Insurer Consider
“There are several factors that an insurer considers when determining a person’s overall health status to get an accurate premium rate. The number one on the list is the age”, says Linda Chavez, the founder of Seniors Life Insurance Finder.
She also says that since younger people are expected to live longer and can make more premium payments, they will have lower rates. When it comes to gender, women enjoy lower premiums as they have longer life than men.
Profession and lifestyles are among the factors. Those who have high-risk jobs like police officers and soldiers pay more. The insurer will also determine the person’s lifestyle, whether he or she smokes or not, has driving violations or criminal records, alcohol dependent, and has severe family and self-medical histories.
Different Health Classes
Life insurance has four health classifications. Some companies have their fifth, which is substandard, and that is where they put the person did not qualify to any of these four:
- Preferred Plus
- Standard Plus
A healthy-living person, having the ideal body height and weight, with no self or family medical histories, qualifies to the first class, Preferred Plus, and will most likely pay the lowest premium rates. They are the insurer’s gems.
On the other hand, those who do not have a family medical history, are still physically fit a