Life insurance companies use a system of classification to determine an individual’s state of health, based on a series of factors pertaining to that person. Your classification can affect how much life insurance coverage you can get at each price point. Healthy people get more favorable classifications and lower rates. If you have health issues, that will be reflected in your life insurance premiums.
The simple reason behind this is that insurers want to determine which policyholders are more likely to die while the policy is still in force. When that occurs, the insurance company has to pay out.
All life insurance companies use roughly the same classification system to determine how much you have to pay for life insurance. The following are the four main classifications used in determining premiums.
Having life insurance can bring peace of mind to you and your family. Too often people forego this protection because of perceived costs. Our experienced agent can help you find the lowest available rates for life insurance.
The best way to lower your life insurance premiums is to improve your health classification. The following steps can help you accomplish that: