We have all seen and heard a ridiculously low price rates for the insurance term life. They are not fake numbers but the reality is very few people actually qualify for discounts offered. The cost of life insurance depends on two main factors: health and age, respectively.
However, before companies considering insuring any specific conditions must be met. There may be some variations and / or exceptions but most person: Not to be imprisoned; may not be in the hospital, especially on their death-bed; may not be on active duty in the military; may not be over the age of 85.
a person’s health is appreciated by one or more insurers. The evaluation usually includes a complete medical history and medications, professional, recreational habits (skydiving is not usually considered healthy recreation), use of tobacco, alcohol and drugs, height and weight, and possibly more as the company is evaluating.
After a person’s age is a factor in relation to health food. The underwriters have a chart that’s actuary has determined how long someone will live based on the evaluation results.
When a person’s health and age have been evaluated and determined by the insurance company, the next factor to consider is the level of long insurance will be for 1 year, 5 years, 10 years, 15 years, 20 years , 25 years, 30 years, or permanently (the rest of life no matter how long it is).
It is important to understand the basic premise of insurance is that it is a bet. The insurance bet something that probably will not happen. The insured bet that something will or could happen.
Insurance Companies know how many but not one
Insurance companies already know they will be wrong a certain number of times per 1000 people insured. The key to them is profitable to be able to be as accurate as possible in (s) they have predicted and / or planned for. The cost is based on the forecast.
Estimate is not Quote
Generally, the words quotes and life insurance do not go together. When asked for costs, the best anyone can do is estimate based on the information provided. Until the insurance company reviews applications and makes an offer numbers, cost and price are not clear.
The prices are set by the insurance companies. The way they work is similar but different companies assessed differently. Agents and brokers have no say in the cost of insurance to do their best to fit a particular person and situation of a particular company.
When an offer is made
There is a quote it is usually a 30-day free look to accept or not.
Less than 5% of all term life insurance policies are never paid or will ever pay death benefits. More than 80% of all permanent life insurance has paid or will pay death benefits.