How Accurate Term Life Insurance Quotes & Rates Are Decided By Life Insurance Companies & Carriers

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Understanding the factors that contribute to the cost of your term life insurance can take some of the frustration out of life insurance shopping and also help you achieve better life insurance rates. Let´s look at term life insurance quotes and move forward from there:

What are term life insurance quotes?

A quote is a quick estimate that lets you find the life insurance companies that can offer you the lowest prices. Finding the right life insurance companies is a significant step because different companies give different importance to the factors that determine final life insurance rates.

What factors influence term life insurance quotes and rates?

• State of residence —Each state has its own applicable laws and taxes which influence the cost of issuing term life insurance.

• Date of birth —Younger applicants represent less of a risk for life insurance companies.

• Gender —Women tend to have higher life expectancies than men.

• Height and weight —An important clue for health and life expectancy.

• Cigarette use —Non-smokers tend to live longer.

• Other tobacco use —Smokeless tobacco is less of a threat than smoked tobacco.

• Term period —If you want protection that lasts for a long time, expect to pay more.

• Coverage amount —If you want a large death benefit, expect to pay more.

• Health classification —The following section details health classification…

How accurate are term life insurance quotes?

Your quote may differ from the rate a life insurance company eventually expects you to pay. It could be because of riders or endorsements which you elect to attach to your policy, but a more significant reason would be that your health classification is not the one you expected. When you apply for a life insurance quote, you estimate your own health class, but the life insurance companies may assign you to a different health class. In order of preference, health classes are:

• Preferred best

• Preferred

• Standard Plus

• Standard

• Table1

• …

• Tablen

To determine health classification, life insurance companies administer a medical exam and investigate the medical history of everyone who applies for term life insurance. The data which they collect helps them to assess the risk which the applicant represents for them.

Actual life insurance rates

The factors that determine term life insurance quotes also influence your life insurance rates, of course. However, as mentioned before, your life insurance rate will reflect the insurer´s determination of your health class—not just your estimation.

Better life insurance rates

For better life insurance rates, use a qualified, experienced life insurance agent. An agent cannot get the life insurance companies to change their prices, but he or she can negotiate to get you into a better health class than initially assigned, and that will lower your life insurance rates.

What can get you into a better health class? You may do well to inform your agent of:

• Your exercise program (which can even include things like climbing stairs or mowing the lawn)

• Your family history (did your parents or grandparents live long and healthy lives?)

• Your good driving record (which can be an indication of your character)

• Your credit history (another measure of character)

• …and any other information that could positively affect your life expectancy.

For more life insurance information, visit www.wholesaleinsurance.net To speak with a licensed life insurance advisor, call 1-800-823-4852.

Article by WholesaleInsurance.net Writer Markham Anderson.