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Term Life Insurance - Some Underwriting Guidelines

Published Thursday, August 28, 2008 by bloggerblognet84084 | E-mail this post

What are some of the insurance underwriting guidelines for a term life insurance quote? I will start with a list of some of them and try to give a quick reason why they use that information to rate a policy.

1. Height/weight: Of all the criteria collected and looked at, this is probably the easiest to understand why. The reason being is if a person is either too far under or over weight for their height, it can lead to serious health conditions.

2. Male/Female: The obvious reason here is because knowing some ones height and weight does not help if you do not know their gender as men are usually heavier then women and still considered to be at a healthy weight. The one reason that is hard to accept if you're a man is that women statistically live longer than men and that will affect the rates of a life insurance policy.

3. Smoker/Nonsmoker: By now everybody knows that smoking is incredibly bad for your health and will shorten your life span in most cases.

4. Blood Pressure: People have a tendency to overlook blood pressure as a sign of potential serious health problems but it is.

5. Diabetes: Again, people have a way of feeling that any health issue that can be helped by taking medicine is not really a serious health concern and that is a shame. People do not make a concerted effort to fix what they do not perceive as a problem.

6. Age: The older you are when you apply for a policy, the more expensive it will be. This is all based on the fact that the older a person is the closer they are to collecting on the insurance policy.

These are just a few of the variables used in life insurance underwriting. The fact that each life insurance company has a different view of the importance of these guidelines is very substantial and should be explained. One company may rate diabetes as a risk that requires a table rating thus charging a very noticeable premium for the policy. A different company may not look at diabetes as a big risk and only give a slight rate increase, if any, for the same life insurance policy. This is one of the biggest reasons why I feel everybody should want to work with an insurance agent that offers multiple insurance companies to get quotes from. If the agent does his/her job they should know what company to submit your application to depending on your particular health conditions.

Allen Henderson is an owner of the website http://www.LifeQuotes4You.com and frequently writes on the topic of Life Insurance. We work for you!

Blogger BlogNet16129

Term Life Insurance - Some Underwriting Guidelines

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Blogger BlogNet16129: Term Life Insurance - Some Underwriting Guidelines

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