If you’re comparing life insurance rates you’ve probably heard plenty of talk about ‘health classes’ and ‘risk level.’ What does it all mean? In short, an insurance carrier assigns your health classification based upon the level of risk they are taking when insuring you – the higher the risk, the higher your life insurance rates.
How is Your Health Class Determined?
Every insurance carrier uses a slightly different risk assessment when determining health class. There are however a few key components every insurance company will use when assessing your health. Either through a physical exam or a series of medical questions, the prospective carrier will learn about your level of physical fitness, your height to weight ratio, your use of alcohol, tobacco and drugs and more. Once this information has been gathered, the carrier will determine your health class and provide a life insurance rate accordingly.
In order to get the very best insurance rates available you will have to receive a preferred plus rating. To be considered preferred plus you’ll have to meet some or all of the following guidelines:
- No health impairments
- No history of cardiovascular disease
- No history of cancer
- No family history of cardiovascular disease
- No family history of cancer
- No current treatment or control of blood pressure with medication.
- No history of drug or alcohol abuse
- No tobacco use in past 36 months
- Healthy cholesterol levels
Life insurance policies are available with and without medical exams. In most cases you face lower premiums if you undergo a medical exam. There are however many reasons people choose to purchase no exam coverage. Not only does it save time, many who are unlikely to pass a physical exam can lock in no exam coverage. If you’re interested in applying for coverage, it’s important to keep in mind that honesty is essential. Misinformation is likely to either be discovered during the underwriting process or affect the validity of your policy down the road.
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