However, despite term life insurance rates being very competitive, those who do decide to shop around in search of the best term life insurance deal may find that they are ineligible for the lowest insurance rates. This is because the rates for term life insurance are calculated specifically upon risk. If you are deemed to be at a high risk of dying in the early years of a term life insurance policy then your insurance rates will be higher than for those who are categorised as being at a low risk of death during this period.
How your 'risk' is calculated is rather dependent upon your health and lifestyle choices. Should you be in poor health or participate in a dangerous sport then the life company is likely to see your risk level as high, and so quote you high life insurance rates. Conversely, if you are a healthy young non-smoker in a stress free job who does not participate in any dangerous sports, a 'low risk' tag will be attached to your name, allowing you to benefit from some of the lowest rates available.
Factors that influence term life insurance rates
The factors that influence term life insurance rates are extensive. Here are just a few factors that can tip the balance when it comes to a life insurance company issuing you with competitive term life insurance rates: -
Smoking
Life Settlement: Towards A Free Market for Life Insurance
The Life Settlement market is all about providing due access to needed cash from existing life insurance.
This so-called free market referred to as the life insurance industry�s secondary market is based on a central premise, namely that the value of life insurance is best determined by independent market forces and has been validated in recent years by its rapid growth. It is also amazing to see the value creation and opportunities that this market presents. What it a life settlement and why may it be an attractive financial alternative to policy holders?
Various market providers in t ..
Smoking has a major influence on the rates of term life insurance. Smokers are at a high risk from contracting lung cancer and from developing breathing disorders, all of which can lead to an early grave. Recent research on life insurance rates suggest that a 35-year old male who smokes could save 51% on the cost of term life insurance if he was to quit smoking.
Obesity
Obesity is a growing problem in developed nations. Too many of us are eating the wrong foods and not exercising enough, putting us at risk of dying young. Term life insurance companies penalise overweight people by increasing insurance rates, as they are seen as being at a greater risk than those who eat a balanced diet and exercise regularly.
Hereditary Disease
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Susceptibility to potentially life threatening illnesses passed down through the family line are penalised too by term life insurance companies. If you are medically confirmed as being at a higher risk of contracting a life threatening illness because of family history then your term life rates will be higher.
Environmental Factors
Exposure to abnormal doses of x-rays, asbestos or other substances that are conducive to poor health later in life will attract high term life rates.
