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Does BMI Affect Life Insurance Rates?

When you apply for a life insurance policy, your insurer will look at your health, your family history, and even your employment and driving records to determine how much you will pay in monthly premiums for your coverage. Of all of the factors that they take into consideration, your health is usually the one that your insurer will take most into account when setting your rates, since your health gives them a good idea of how much of a risk you are to insure. And one of the things that they consider when looking at your health is your body mass index, or BMI. If you have a high BMI you may be worried that it will be tough for you to get approved for a life insurance policy. But there is some good news: if you are overweight, it is still possible to get life insurance, because there are many different types of policies available.

How BMI Affects Life Insurance Rates

In most cases, when you apply for life insurance, you will have to undergo a medical exam to determine your rates. This exam will include measuring your BMI, which is a simple calculation of your body fat based on your weight and height. The scale is the same for men and women, and it does not account for factors like your body build.

To make sense of the numbers you will see when your BMI is measured, the scale looks like this:

Underweight = <18.5
Normal weight = 18.5-24.9
Overweight = 25-29.9
Obese = 30 or greater

Why do life insurance companies look at your BMI? The higher your BMI, the higher your risk for developing conditions such as heart disease, high blood pressure, diabetes, and even some cancers. And because being overweight means that you are more at risk for developing these health conditions, it also means that you’re more likely to have a shorter life expectancy, and you are more of a risk to life insurance companies.

Every life insurance company has its own set of criteria that will determine your rates for their insurance policies. If you do have a higher BMI, it’s generally not something to worry about, because BMI is only one part of what goes into determining how much you will pay for coverage.

Options For People With High BMI

many weight doors in a row — *There are many different life insurance policies available, even if you are overweight.*

Even if you fall into the overweight or obese category, there are life insurance options available to you. If you are denied life insurance, you can still shop around for policies that don’t require a medical exam, such as simplified life insurance.

The best way to find a great affordable plan is to compare plans from different life insurance companies, especially because each insurer has its own separate BMI requirements, along with different ratings for other factors. In the meantime, while searching, you should consider making some lifestyle changes that can improve your overall health; making these changes will mean that many insurers will be more likely to approve you for coverage, or even possibly lower your premiums.

The best way to find the most affordable policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a company with good rates, and give you ideas for how to cut down on costs. We have listed some companies to work with that will be able to find you the most coverage for less. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

What Is Backdating? And How Can it Help Reduce Your Life Insurance Rates?

Life insurance companies use many factors when determining your rates for a policy, including your driving record, health history, and age. The latter is one of the main determinants of your rate: the younger and healthier you are, the cheaper life insurance will be, so some people choose to backdate their policies to lower their life insurance rates. Backdating can be used to lower your age on your policy, which will qualify you for reduced premiums on your policy. But how does it all work? And can it be used against you?

What Is Backdating?

illustration of a calendar — *Backdating can save you money by using the age nearest your half birthday instead of your actual age.*

While it might seem that determining your age for a life insurance policy should be very straightforward, it can actually get a little complicated. Some life insurance companies will use your actual age when you apply for the policy, while others will use your age at your next nearest birthday or half birthday. This means that, for example, if you were to turn 40 on March 4, you would be considered 40 on a policy application only until September 4 ( 6 months after turning 40). If you applied for a life insurance policy after September 4, you would be considered 41 years old to the life insurance company, since that company sets their rates according to your age at your next nearest birthday.

But some insurers allow you the option to backdate your policy. This means that you request the life insurance company assign your policy date to your last birthday, even if it has passed. For example, if you turned 40 in March and it is now November, you will technically be considered 41 to the life insurance company. But, you can request that the insurer backdate your policy to your birthday in March.

Disadvantages Of Backdating

You can only backdate your policy to your last half birthday, and no further than that. It might help to lower your premiums, but you should know that there is a disadvantage to backdating your life insurance policy. If you choose to backdate your policy, your premium payments will be due from the policy date, which means you will have to pay for any additional months from that 6-month mark, even though you were not technically insured at that point.

To return to our previous example: it’s now December, meaning you’re past your six-month half birthday period (September 4), and you decide you want to backdate your policy to your 40th birthday in March. You will get the 40-year-old rate instead of the 41-year-old rate, but will have to pay 4 months of extra premiums.

Should You Backdate?

Although you will have to pay for a few extra months if you want to backdate your life insurance policy, you could end up saving hundreds of dollars in premiums over the years. It makes the most sense for people who are older to backdate their policies, because the older you are, the higher your life insurance premiums will be.

If you are considering backdating, it would be wise to compare policies from different companies and work with an agent who can help you. They will be able to calculate the costs, and determine how much you will save on your premiums monthly or annually if you decide to backdate. They can also determine how much you will need to pay upfront.

To find the right policy for you, consider using online tools, or speaking with an agent. We have provided the top life insurance companies in the nation that offer hassle-free assistance and the most competitive rates below. Always check multiple sites to make sure you have bargaining power and know the different advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

How Does The Life Insurance Underwriting Process Work?

If you’ve been looking for a life insurance policy, you probably know that you’ll need to go through the underwriting process to determine how much you will pay for your monthly premiums. But just what is this process? It simply means that, when you apply for a life insurance policy, the insurer will gather information about you so they can determine how much of a risk you will be to insure. It might sound a bit scary, but it is a very routine process, and will not prevent you from finding a great policy at an affordable price. While some insurance companies will have different criteria for their underwriting process, there are some general things you can expect.

What Life Insurance Companies Will Look At

In order to determine if they should insure you, and how much they should charge you for premiums, life insurance companies will need to gather information from you to get a glimpse of what your overall life expectancy might be. They’ll want to know if you have a relatively healthy lifestyle, or if there might be anything you are engaging in that could lower your life expectancy, such as smoking or doing a hazardous job. Things like that will be taken into account, which could mean higher rates or possible denial of your application.

The factors that insurers take into account include:

Medical Factors– Insurers will want to know your height and weight, if you smoke, if you use any prescription or recreational drugs such as marijuana, if you have a history of medical conditions like heart disease or diabetes, and your family’s medical history.
Lifestyle Factors– They will also look at your driving and criminal record, and will want to know about anything risky that you engage in, such as skydiving or even foreign travel.
Financial Factors– Finally, you will have to disclose your current occupation and income, as well as your financial history, including any bankruptcies.

How the Underwriting Process Works

Now to look at how the underwriting process works when you apply for a life insurance policy. Your insurance company will go through the following steps:

Reviewing your application– The insurer will check your application and make sure that the information you provided is complete and correct, including your listed occupation, your date of birth, and what type of coverage you are looking for.
Administering a medical exam– Depending on the type of life insurance policy that you choose, you might have to undergo a medical exam to determine how healthy you are. It will check your weight, height, and blood pressure, and you’ll be required to give blood and urine samples. However, if you choose to purchase a no medical exam life insurance policy, you will skip this step.
Checking databases– After reviewing your application and your medical exam, the insurer will look at some third-party sources to get information, including your driving record and prescription records over the last few years. This is to make sure that you did not lie about your medical history on your application, and to make sure that you do not have any past DUIs or major infractions on your driving record.
Requesting your physician’s statement– This step will usually apply to you if you are older and applying for a large amount of coverage. Life insurance companies might ask your physician for a statement certifying that you are in good health, to make sure that you are not taking out a life insurance policy because you are battling a terminal illness or are likely to pass away soon.

The underwriting process can take up to 8 weeks. Once it is complete, your insurance company will assign you an insurance classification. There are four basic classifications that determine your rate and eligibility for a policy:

Preferred Plus is the best rating that you can receive, and will allow you to get the lowest rates available.
Preferred means you are in fairly good health and can receive affordable premiums.
Select classification means you will be approved, even though you might have a history of previous illnesses.
Standard classification means you have a family history of health problems and other issues, and that you will pay higher premiums.

Every life insurance company has different criteria for its underwriting process, which is why it is important to shop around and compare plans from multiple insurers. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there!

We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Do I Need A Million-Dollar Life Insurance Policy?

Who couldn’t do with a million dollars, right? You might dream of making that much money, or of leaving that amount to your family so they won’t have to worry about money after you’re gone – and if you’re shopping for life insurance policies, you’ll find that million-dollar policies exist so that you can provide that to them. But is a policy that big right for you and your situation? Before considering a million-dollar life insurance policy, you’ll need to consider your needs and your eligibility.

Who Should Get A Million-Dollar Life Insurance Policy?

Million-dollar life insurance policies are just what they sound like – policies that promise a $1,000,000 death benefit to your family members in the event of your passing. As long as you pay your monthly premiums and do not let your policy lapse, or lie during the application process, your family is guaranteed a million dollars when you pass.

In general, your life insurance policy should cover 5-10 times your salary, so if you earn about $100,000 a year, then a million-dollar policy might be the right choice for you. However, a million-dollar life insurance can also work for you if you earn less and want to cover:

Large debts, such as a mortgage and student loans
Child care and dependent expenses
Funeral expenses
Your children’s education

You will need to factor in all of the above and estimate your future expenses to see how much coverage your family will need further down the line.

How Much Does A Million-Dollar Life Insurance Policy Cost?

Life insurance premium rates are always dependent on a number of factors, including your age, health history, smoking habits, and more, but you might be surprised to know that even million-dollar policies can be very affordable. If you are young and healthy, a policy can cost you as little as $35 a month, or a little over $1 a day.

Another factor that will help determine the price of your premiums is the type of policy that you choose, whether it be term, whole life, or universal life insurance. Term life insurance will be the least expensive choice of the 3 types because there is no cash value included with the policy. The benefits of term life insurance include:

Lower premiums
Guaranteed death benefit (as long as premiums are paid)
Choice of 10, 15, 20, 25, and 30-year policy term
Premium prices are locked in for the entire policy term
Renewable at the end of the initial term

But if you choose to go with a whole life or universal life insurance policy, you will have cash value that builds over time, which you will have access to at any time.

What Are The Eligibility Requirements for a Million-Dollar Policy?

If you are considering a million-dollar life insurance policy, be prepared to give some information to the life insurance company you have chosen; they will want to assess your risk to determine if you will qualify for that large of a policy. Not only will you have to pass medical underwriting, but the company will also look at:

Your age– Most insurance companies will issue a million-dollar policy that is 40 times your annual income for applicants under 40, 25 times for people ages 40-60, and 10 times for people ages 60-70.
Your income– Most insurers, though, will offer benefits that are anywhere between 10 and 30 times your annual salary, with some variation based on your age.
Your health– Any current and past health conditions will be considered.

Looking For A Life Insurance Policy?

If you are looking for a million-dollar life insurance policy to help protect your family’s financial future, you might find that you are eligible for one, and that it is more affordable than you thought it would be. But if you do find that a million-dollar policy is not the right fit for you, don’t worry: you can find another affordable plan with great coverage with the help of a life insurance agent.

There are many different life insurance companies with different coverage options and prices, which is why it is important to compare all of your options, and the best way to do this is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Questions To Ask Before Buying Life insurance

When it comes to life insurance, there are two things that you can be sure of: you need it in order to ensure your family’s financial stability in the future, and you have a lot of decisions to make when choosing a policy. It takes a lot of thought – and it should: it’s a big, important commitment. So if you’re unsure how to narrow down your choices, and how to decide which policy is right for you, you should first ask yourself the following questions; having the answers in your mind can make the process of comparing life insurance policies and buying the right plan much easier.

How Much Coverage Do I Want?

suitcase full of money stacks — *Before buying life insurance, you will need to determine how much money will be enough for your family when you are gone.*

When determining how much coverage you will need, you have to ask yourself who depends on you and what kinds of debts you have. Typically, the death benefit on your policy should equal up to 10 times your current annual income, but it is important that you take the time to write down all of your current financial obligations, such as your mortgage, childcare expenses, car payments, and any other future obligations. Will you want to leave an inheritance when you pass away? Help your children pay for college? Buy a house? All of these things will need to be taken into account when choosing your benefit amount, and the best way to calculate your life insurance needs is to get help from a trained agent who can help you determine how much coverage you will need.

How Long Should I Have Coverage For?

Once you choose the amount of coverage you need, you will have two basic types of life insurance coverage options to choose from: term and permanent.

The difference between the two is that a term life insurance policy will cover you for a specific amount of time (typically 10, 20, or 30 years), while a permanent life insurance policy will cover you for your whole life. The advantage to term life insurance? It’s cheaper, and can be a great, affordable option if you want to provide income for your family to cover short-term debts and needs. For example, do you have a 30-year mortgage that your spouse would have difficulty paying off if you die? Then a 30-year term life insurance policy is perfect to cover those 30 years until the mortgage is paid off.

If you are unsure if a term life insurance plan will provide enough coverage, look into a permanent life insurance policy, which would allow your family to live comfortably, even after your debts are paid. These policies have a cash value growth potential and can replace income, assist with your retirement planning, and more. Comparing all of your different options will give you a better understanding of which policy is better for you and your family, and how much you can afford.

How Healthy Am I?

african american woman stretching touching her foot with one hand and the other hand backwards in the air — *Ask yourself how healthy you are to get a better understanding of how much premiums will be; the healthier you are, the cheaper it will be.*

This question is important in determining which type of policy is better for you. Life insurance rates are based on multiple factors, and your health history is one of them: the healthier you are, the cheaper your premiums will be, and vice versa. But even if you do have health conditions, there is no need to worry! With a guaranteed issue life insurance policy, such as simplified issue life insurance, you will not be turned down because of your health; you will not have to answer medical questions, or undergo a medical exam.

Will Premiums Change Over Time?

This depends on which kind of coverage you go with. With term life insurance, your premiums start out lower than with permanent coverage and stay at a fixed rate for the term, but if you choose to extend your policy, your rates will go up. With whole life insurance, as long as you don’t let your policy lapse, your premiums are guaranteed not to increase for the rest of your life. If you choose to go with a universal life insurance policy, your premiums will increase with age, but if you have accumulated cash value, this can cover the increases. These are all things you will have to consider and compare when researching life insurance policies.

What Happens If I Don’t Die During A Policy’s Term?

If you opt to get a term life insurance policy, there is a good chance that you will survive the specific term, and if you do not pass away during the term, no one receives the death benefit. You do have the option to keep your policy and convert it into a whole life insurance policy, but you need to be aware that your rates could go up, especially if you develop health conditions. This is why it is important to consider from the start if a term life insurance policy is your best option, or if a permanent life insurance policy is better for your circumstances.

Choosing the right life insurance policy is necessary in order to ensure that your family gets the benefits they need. It might seem complicated and frustrating to find the right one, but it can be done, with some help. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

4 Mistakes to Avoid When Buying Life Insurance

Purchasing life insurance is the best way to make sure your family is financially protected when you are gone – sure, it might not be something that you want to think about, and searching for a policy might not be on the top of your list of fun things to do, but it is necessary, for your loved one’s sake. We get it: with so many different policies from so many different companies to choose from, searching for the right policy for you can seem like a frustrating and complicated chore, but not taking your time to compare and find out which one is best for your needs can end up hurting your loved ones. Learn the four mistakes that many people make when buying life insurance, so you can be one step ahead of the game.

1. Choosing The Wrong Policy

a checklist with 2 red X's — *Before buying a life insurance policy, make sure it checks all of your boxes.*

When shopping for a life insurance policy, you want to get the most bang for your buck. So, with so many different types of policies to choose from, you need to do your research and compare! Think about what you want from a policy: for example, if you want a policy that would cover major expenses for a certain period of time, say while your family is repaying the mortgage, a term life insurance policy is best for you. But if you want a policy that will cover you for your entire life, term insurance is not the way to go, because after your term expires, renewing it can be expensive. If a longer policy is what you’re looking for, whole life insurance is a better option; in addition, these policies offer cash value that you can borrow from during your lifetime.

Side note: it might be tempting to buy the cheapest policy, but don’t! Before you make any decisions based solely on price, check out the insurance company offering the policy: they might not be reputable or reliable, and if they go out of business, you could lose your policy. In addition, if you choose the cheapest option, you could simply end up with a subpar policy that doesn’t provide the coverage your family needs.

2. Not Shopping Around

As with any other type of insurance, you need to shop around to get the best rates and coverage. Life insurance companies are all different and use different data to assess your risk; for example, what one considers a major pre-existing condition that disqualifies you from getting a policy, another will not see it as not such a big deal, or some will charge more if you smoke, but others will not. This means that they also price coverage options differently, which can either end up costing you or saving you thousands of dollars. Comparing the coverage and prices of policies from different companies is the best way to make sure you are getting the right plan with the most savings. The best way to do this is to shop around, and work with an agent who can help you compare policies.

3. Not Buying Enough Coverage

illustration of a woman turning a piggy bank over with one coin falling out — *Choosing a life insurance policy is one of the mistakes that can end up hurting your loved ones when you are gone.*

Far too many people underestimate how much life insurance coverage their family will need. In order to figure out how much coverage is necessary for your family to continue to pay their bills when you are gone, you will need to take the time to do some math: add up your monthly expenses, or long-term expenses, including college tuition, mortgage payments and other debts, and then subtract that figure from your life insurance coverage. This will give you an idea of how much your family would need to be able to pay their big expenses and still have money left for everyday expenses.

Once you’ve done that and chosen the death benefit amount you think is appropriate for your family, remember to then figure out how much your beneficiary will receive in annual withdrawals from your policy. To do this, cut the amount of your death benefit in half and drop a zero: for example, if your policy has a $250,000 death benefit, half of it would be $125,000, and dropping a zero would make it $12,500, which is how much your family would get annually, which equates to about $1,042 a month. If that doesn’t sound like it would be enough to cover monthly expenses, consider a higher death benefit.

4. Waiting To Buy Life Insurance

orange circle with a green price tag and a money sign on it — *Waiting to buy life insurance can make it more expensive later.*

Over half of all Americans put off buying life insurance, but waiting to buy it is one of the worst mistakes you can make. Life insurance rates are based on a number of factors including your health and family history, but they are also based on your age, so the younger and healthier you are, the cheaper a life insurance policy will be. In addition, if you wait too long, you could end up developing a health condition, which would also push your rates up, or you could unexpectedly pass away without a policy, leaving your family struggling to keep up with their living expenses.

If you avoid all of these common mistakes people make when it comes to buying life insurance, you will be able to provide enough coverage for your family without breaking the bank. Shopping around, doing some comparison (and some math), and not waiting to purchase will mean you’ll be able to find a great life insurance policy that provides the protection your family needs. When deciding on a policy, consider using online tools to see what is available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

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