YOU ASK:

What can I do to qualify for a cheap life insurance policy?

WE ANSWER:

Despite the soaring prices of every other kind of insurance, life insurance rates have dropped significantly over the past ten years due to the increase in life expectancy and competition. If you are healthy and you have a spotless driving record, you can qualify for the lowest premium rates of a life insurance policy.

Generally, life insurance has become much more widely accessible: you can lower your premiums and may be able to purchase a policy at an affordable price even if you were considered uninsurable a few years back. In order to qualify for the cheapest life insurance, however, you need to meet some very strict requirements.

Life Insurance Eligibility Criteria

Compared to the past, insurers nowadays use more complex criteria for assessing risk. In the process of underwriting, they apply factors such as sex, nicotine and alcohol abuse, cholesterol levels, blood pressure, body build, family medical history, driving record, hobbies and activities, which are likely to affect one's odds of dying while the policy is still in force.

Insurers use the so-called "risk classes" for assessing men's and women's eligibility for life insurance. The requirements and time periods may differ slightly from company to company but they can be summed up as follows:

No history of substance or alcohol abuse;
No use of nicotine in the past five years;
No history of cancer, heart disease, diabetes, etc. in any parent or sibling before age 60;
Cholesterol levels must be 210 or lower;
Blood pressure cannot exceed 140/85;
One must satisfy certain height/weight ratio requirements;
No DUI convictions and no moving violations in the past 5 years;
No hazardous hobbies or activities in the past three years;
No travel in underdeveloped or politically unstable countries.

To qualify for the lowest life insurance rate or lower the premiums on your existing policy, you can try losing weight, stop smoking and improve your driving record. These are the factors that can affect your premium rates considerably. For example, according to an instant online quote tool, a 26-year-old woman who has never smoked can qualify for an annual premium of as little as $124, but if that woman was a smoker, she could end up paying $390 a year.

Was this insurance question and its answer useful?

Not a bit

Currently 0/5 Stars
1
2
3
4
5

Very useful

Have an Insurance Question? Ask For Insurance