Cost Factors in getting Whole
Life Insurance |
There are many factors, which can raise or lower
your whole life insurance rates such as health and driving history
or even employment background and hobbies. To learn more about these
factors and find out how you can lower your whole life insurance
rates, click on the links below:
How insurance
companies determine whole life insurance rates
How my health history can affect my whole
life rates
What other factors affect my whole life
rates?
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How
insurance companies determine whole life insurance rates |
| In order to establish your premium rate, insurance companies assign
you to a specific category: standard, preferred or preferred plus.
Standard: Most people fall into this category. If you do not have
any serious health problems, then you qualify as a standard risk
individual. Standard risk people qualify for an insurance company's
standard rates.
Preferred: For those you who are in better than average health
and have absolutely no history of health problems, you may qualify
as a preferred risk individual. Preferred risk people qualify for
lower preferred rates.
Preferred Plus: Few individuals qualify for these extra low rates,
which call for an outstanding health history.
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How my health
history can affect my whole life rates |
Your personal health is very important in determining your specific risk category, for this reason younger people generally have lower premiums. Consider the following personal health factors, which could cause you to be classified as higher risk and thus raise your premium rates:
- History of major health conditions, such as cancer, diabetes and heart disease will classify you as at least standard risk, with the possibility of being high risk.
- High blood pressure, that is, blood pressure readings above 155/95 will be considered high risk. Preferred risk readings are below 150/90 and preferred plus readings are below 140/85.
- High cholesterol levels, that is, levels exceeding 280 HDL and 8.0 will be classified as high risk. Preferred risk levels are below 240 HDL and 6.5, and preferred plus levels are below 210 HDL and 5.0.
- History of alcohol or substance abuse can classify you as a higher risk. No alcohol or substance abuse history is allowed for preferred or preferred plus. A standard risk individual must have no alcohol or substance abuse in the past 7 years.
- History of tobacco use can classify you as a higher risk. No nicotine use allowed for preferred or preferred plus individuals, although some preferred smoker rates are available. A standard risk individual must have no use of nicotine products for the past year, although standard smoker rates are available.
- Family history of major health problems can classify you as a higher risk. No family history of cardiovascular disease or cancer before the age of 60 is allowed for preferred or preferred plus individuals. For standard risk, no more than 1 family death from cancer or cardiovascular disease before the age of 60 is allowed.
- Being overweight can classify you as a higher risk. See height and weight limits below:
| Height |
Maximum Weight Men |
Maximum Weight Women |
| 4' 10" |
135 |
129 |
| 4' 11" |
139 |
132 |
| 5' 0" |
144 |
135 |
| 5' 1" |
148 |
138 |
| 5' 2" |
153 |
140 |
| 5' 3" |
158 |
143 |
| 5' 4" |
163 |
145 |
| 5' 5" |
168 |
148 |
| 5' 6" |
174 |
150 |
| 5' 7" |
179 |
155 |
| 5' 8" |
185 |
160 |
| 5' 9" |
190 |
165 |
| 5' 10" |
196 |
170 |
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| Height |
Maximum Weight Men |
Maximum Weight Women |
| 5' 11" |
201 |
175 |
| 6' 0" |
207 |
180 |
| 6' 1" |
213 |
184 |
| 6' 2" |
219 |
188 |
| 6' 3" |
225 |
193 |
| 6' 4" |
230 |
197 |
| 6' 5" |
237 |
201 |
| 6' 6" |
243 |
205 |
| 6' 7" |
249 |
209 |
| 6' 8" |
256 |
214 |
| 6' 9" |
262 |
218 |
| 6' 10" |
268 |
222 |
| 6' 11" |
276 |
226 |
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Keep in mind that definitions of standard and preferred risks vary from company to company. The previous classifications are meant only as a guide.
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What
other factors can affect my whole life rates? |
Driving history: No more than two moving violations for the past
3 years are allowed for standard, preferred or preferred plus individuals.
No record of DUI or reckless driving is allowed (to qualify as preferred
plus), for the past 5 years (to qualify as preferred) or for the past
2 years (to qualify as standard).
Employment history: If you are or ever have been employed as a pilot,
you will be classified as higher risk.
Dangerous hobbies: If you engage in any dangerous hobbies, such as
skydiving, bungee jumping, or deep sea diving, you will be classified
as a higher risk.
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