What makes you a low-risk investment for health insurance?
You are over the age of 60. b. You are in good health. c. You smoke. d. You have many speeding tickets or accidents. The answer is: b. You are in good health. When you are in good health, the insurance company would see you as a low-risk investment since it you are less likely to become ill and make them pay coverage for the treatment.
What determines the cost of life insurance?
Gender is also a crucial factor since women statistically live five years longer than men; as a result, insurance carriers typically offer women slightly lower premiums. Smoking, health, lifestyle, family medical history and your driving record are the other key determinents of how much you might expect to pay for life insurance.
What is the number one factor behind life insurance premiums?
Age Not surprisingly, the number one factor behind life insurance premiums is the age of the policyholder. If you’re young, the chances are that you’ll be paying the insurer for years before they ever have to worry about writing your family a check. Consequently, you’re better off taking out a policy before it’s too late.
What factors determine the price of health insurance?
The price of the policy that you pay usually depends on the type of risk that the insurance company is running. If you are older than 60 years old, the risk of getting ill and requiring medical care is higher than in younger adults.
Which of these factors does not affect life insurance premium rates?
Which of these factors does NOT affect life insurance premium rates? Mortality, expenses, and interest are the only factors that determine premium rates. Kevin has an existing life insurance policy and assigns it to another insurer for a new contract.
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Convertible insurance lets the policy owner convert a term policy that only covers the insured individual for a predetermined number of years into a policy that covers that individual indefinitely, as long as the policyholder continues to pay the insurance premium.
When shopping for life insurance the best strategy is to?
When shopping for life insurance, the best strategy is to: Figure out how much you need, then comparison shop using the Web and other resources. Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45.
Which of the following factors is not considered by an underwriter when determining the premium rates for an individual seeking insurance?
Which of the following factors is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance? The uncertainty or chance of loss.
What life insurance policy allows a policyowner to take out a loan from the policy's cash value?
Automatic Premium Loan (APL) Provision: A permanent life insurance policy non-forfeiture provision that allows an insurer to automatically pay an overdue premium for a policyowner by making a loan against the policy's cash value as long as the cash value equals or exceeds the amount of the premium due.
Which of these types of life insurance allows the policyowner to have level premiums and to also?
Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? A life insurance policy that has a level premium but allows the policyowner to choose from a selection of investment options is known as Variable Life.
How do you buy life insurance wisely?
Decide if You Need Life Insurance.Determine How Much Life Insurance You Need.Determine Which Type of Life Insurance Is Right for You.Decide if You Need Life Insurance Riders.Choose a Life Insurance Company.Purchase Your Policy.
What is the main purpose of life insurance?
The primary purpose of life insurance is to provide a financial benefit to dependants upon premature death of an insured person. The policy pays a specified amount called a “death benefit” to the named beneficiary, when the insured dies.
How does life insurance work in the Philippines?
In short, you pay a fee, called premium, depending on your chosen mode of payment, which may be monthly, quarterly, semi-annual or annual, in exchange for the sum of all payments plus some benefits or potential return, depending on your chosen life insurance product, in the future.
What factors affect life insurance premiums?
8 Factors That Affect Life Insurance PremiumsAge. Your date of birth is the top factor affecting your life insurance premium. ... Gender. Women tend to live longer than men. ... Health History. ... Family Health History. ... Smoking. ... Hobbies. ... Occupation. ... The Policy.
What factors affect insurance premiums?
Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age, anti-theft features in your car and your driving record.
Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant?
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? To determine the premium rate on a Whole Life policy, an insurance company will consider the risk classification of the applicant.
Why do you need you will pay substantially less for life insurance if which of the following factors is true??
The world is developing at a frantic pace. Cars, trains, planes and other technical machines and mechanisms fill our lives. Not only does their number grow, but their speed and operations increase. In this regard, the likelihood of injury is repeatedly increased.
you will pay substantially less for life insurance if which of the following factors is true? and risk reduction
you will pay substantially less for life insurance if which of the following factors is true? is a tool to reduce your risks. Depending on the chosen program, you can partially or completely protect yourself from unforeseen expenses.
What are the factors that determine how much you should pay for life insurance?
Smoking, health, lifestyle, family medical history and your driving record are the other key determinents of how much you might expect to pay for life insurance.
What are life insurance quotes based on?
Life insurance quotes are based on several factors, some of which may be beyond your control; when researching policies, consider the seven factors here and choose an insurer less likely to penalize those in your particular position.
What is the underwriting process for a health insurance company?
The underwriting process for most carriers includes a medical exam in which the company records height and weight, blood pressure, cholesterol, and other key metrics. They may also require an electrocardiogram (ECG or EKG) to check your heart in some cases.
Do life insurance companies look at your driving record?
Driving Record. It may come as a surprise, but many life insurance companies look at your driving record during the underwriting process. Whether or not they ask about violations on the application , they can access Department of Motor Vehicles records to find out if you’ve run afoul of the traffic laws.
Does smoking affect insurance?
So if you like to light up, it’s a red flag for insurance companies. In fact, it’s not uncommon for smokers to pay more than twice as much as non-smokers for comparable coverage. The effect on your pocketbook is another great reason to try and kick the habit.
Which has a lower premium, whole life or term life?
Term life insurance has the lower premium because term life insurance pays the face value to your beneficiary if you die within a certain set period of time, whereas whole life insurance covers you your entire life. Eva is 29 years old and has 2 children, ages 3 and 5. She makes $48,500 a year.
Why is permanent life insurance lower?
d. Permanent life insurance has the lower premium because the amount you contribute is then invested and makes interest for the life insurance company.