Insurance Underwriting 101
Life insurance underwriting takes into consideration both the physical and lifestyle components which characterize your personalized risk assessment profile.
Risk assessment is reflected in the preferred plus, preferred or standard classifications given to each policy as it is underwritten. The classification of your policy is important; the premiums you pay for insurance coverage correspond to the classification you are given during the underwriting process.
It is possible that some ratings can be improved even after the issuance of your policy. For example, quitting smoking, lowering your cholesterol or reducing your weight could improve your rating over time as you become a better risk.
However, proper risk classification is essential when shopping for life insurance coverage. While it is important to realize that each company’s definition of preferred or standard risk varies slightly, basic underwriting guidelines are defined as follows:
Preferred Medical Risk Assessment
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No tobacco use for at least one year prior to date of application. Pipe/cigar use varies by company.
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No family history of cardiovascular disease prior to age 60, including parents and siblings.
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No personal history or cardiovascular disease, stroke, diabetes, cancer or drug/alcohol dependency.
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An average, untreated blood pressure not exceeding 150/90; no history of hypertension under treatment.
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A cholesterol level not exceeding 250 (or 240 for tobacco users), with a cholesterol/HDL ratio not exceeding 7.
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Weight proportionate to height; weight limits vary by company.
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Preferred Lifestyle Risk Assessment
- Adverse driving record (including DUI charges or an excessive amount of driving tickets).
- Hazardous sport or aviation activities such as hang gliding, scuba diving, ballooning, power racing, mountain climbing or private piloting.
- Foreign travel to certain areas of the world that are deemed dangerous.
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There are many factors that impact the premiums you might pay for life insurance coverage. Many term life quotation services quote only preferred plus rates to their potential customers without reviewing individual underwriting criteria.
At
Insurance Direct® our experts specialize in accurate risk classification based on your personal risk assessment profile. You are assured that you will receive expert guidance in obtaining the policy best suited to your own specific medical and lifestyle situation.
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