If you haven’t figured it out yet, it’s called life insurance because it is based on someone’s life. This person is commonly referred to as the “insured”, which is fancy terminology for the person the insurance company is betting on NOT to die prematurely. In order to come up with the pricing for what they are going to charge, they will want information about the health and activities of the insured which is called the “underwriting process”. These can increase the price for life insurance:
Family history – has a parent or sibling been diagnosed or died from cancer or coronary artery
disease?
Alcohol – no history of alcohol abuse in the last ten years. Generally, insurance companies will
not give the best rating if the insured has more than two drinks per day.
Height & Weight – its not personal… its statistical. For best rates a six-foot male has to be
around 215 lbs. or less, a five-foot five female has to be around 160 lbs. or less.
Tobacco – If you use tobacco in another other form than cigarettes some companies may offer a
non-tobacco rating.
Marijuana – if you use marijuana recreationally some companies may offer a non-tobacco
rating.
Hazardous Activities – mountain climbing, flying, scuba diving, bungee jumping, sky diving, race
car driving, (better to take up after getting your life insurance in place ��)
The crazy part of the insurance industry very few people talk about is the fact that some life insurance companies will charge way more for a certain health condition or hazardous activities. Basically, it is up to the opinion of the head life insurance underwriter at the insurance company to set the underwriting guidelines, which can vary across the industry. If you really want to get the best deal on life insurance you should work with an independent agent who represents multiple companies so they can shop around and fight for the lowest price. If you are in overall good health you should qualify for preferred rates and we would enjoy speaking with you about some options, give us a call or schedule an appointment online with Carter Gray CLU at www.pacificinsurancegroup.com We can shop around to make sure you get the best deal on life insurance.