How Do Health Ratings Impact Life Insurance Prices?
How does your health rating define your life insurance policy?
The state of your health is very important in determining the type and the amount of coverage you can get. If you’re looking to get a Term policy, you will need a higher rating. The measure for your health rating is based on the number of prescriptions you are on. Generally, you need to be on three prescription medicines or less to get a good health rating.
The average age for getting a Term policy is 60 years and younger. But there are many exceptions to this. You get still get a plan as old as 80 years old and even beyond. However, it gets very expensive and you have to be in prime health. Let’s say, you’re 70-80 years of age, you can technically get a Term policy. But, even if you’re in perfect health and have no prescription medicines, it’s going to be very costly because the insurance company is going to have to pay out your premium sooner. It just depends on what you need. Therefore, Term policies are for younger, healthier persons to be cost-effective with a Standard or Standard Plus health rating.
Generally speaking, there are about five or six health ratings. The lowest health ratings are generally a graded or return of premium. Whole life policy return of premium term is a good thing but the return of premium is graded for a whole life policy.
Generally, if the insurance company is having some health issues they’re concerned about, they’re not going to approve you at a lower cost. The price will be higher because they see you as a higher risk client. If you’re looking at the standard policy, that’s kind of an average health rating and it’s neither good nor bad.
Most policies are going to fall in that category. They are standard.
Standard plus is an above-average health rating. In order to get that and anything above, it needs to be a fully underwritten policy. Generally, you see these with term policies, not with whole life policies, although there are some exceptions there as well.
There are healthier ratings with whole life policies as well. You don’t have to be in perfect health to get a preferred rating. In fact, given the access Protect With Insurance has to different insurance companies, we can generally put someone into a preferred rated policy, which lowers your price even if you have health problems. Even if you have high or low blood pressure, cholesterol problems, diabetes, heart issues, kidney issues, liver issues, lung issues, etc., you can still get into the preferred category.
We have great access to all these companies, and that’s the key to getting the best price. When you choose any company, make sure that they have access to a number of insurance companies.
If you can get the highest health rating, your price is going to be one-third the cost of a standard health rating. It is significantly lower than the other categories and hence a big deal. It’s going to save your family a significant amount of money. You can get more than one person insured in the same amount that you would have paid for one person. You can have three or four times the coverage at the same cost just by adjusting that health rating. Make sure that you have someone that has the access to find the best company for you.
If you are located in the Cottonwood, Sedona, Flagstaff or Prescott area and are looking for more information on affordable Life Insurance please don’t hesitate to contact us. Use the links below or call us directly at: (928) 323-0933.