Underwriting: By testing and studying the histories of the people who apply for insurance, the costs to the insurance consumer are kept down. This procedure of reviewing what rate is charged to an individual is called underwriting.
Underwriting life insurance is not a precise science: Each life insurance company looks at circumstances in a somewhat different way. That’s where an experienced and knowledgeable advocate for your insurance comes into play – a high-quality agent – an agent that has worked with the different life insurance companies and can direct the insurance policy to the company that fits each person’s circumstances and history – and has the best rate. That’s where a company, like InstantQuoteLifeInsurance.com, comes in.
What are the underwriting concerns of the life insurance companies? They are looking at the kind of health concerns that one’s doctor is looking for: Cigarette smoking, cholesterol above normal limits, the ratio of good cholesterol to bad cholesterol, one’s weight and any medical history or dangerous recreational sport that could decrease a person’s life span.
Synopsis of how life insurance rates are calculated:
- One’s age
- Health history
- Gender: A female is charged less for life insurance than a male of the same age based on the fact that females live longer.
- The medical history of one’s parents, brothers and sisters
- Lifestyle: Do you drive race cars? Do you go to hot spots in the world? Do mountain climbing? Parachute jump?
Life insurance companies want to ensure that a candidate receives the best coverage rate, and by using these techniques, the cost to the insurance consumer can be kept to a minimum. Click here to start your life insurance quote.