How is my term life insurance rate determined?

Many factors play a role in the calculation of term life insurance premium rates. In general, rates are based on the amount of coverage selected and the probability of the policyholder living until the policy expires. The more likely you are to be alive at the policy’s expiration, the lower your term life insurance rate can be. However, if you have certain health or lifestyle characteristics that the insurance company views as risky, your rate may be higher.

Health Considerations

Life insurance underwriters look at your current health status and, and also your past medical problems and family history. Factors that may influence your term life insurance rate include:

•    Diagnosed conditions. If you have been diagnosed with certain conditions, such as diabetes, high blood pressure, heart disease or other health problems, your estimated life expectancy (for life insurance purposes) decreases, which causes your premiums to increase.
•    Weight. A higher-than-normal Body Mass Index (BMI) can lead to health problems and may raise your life insurance premiums.
•    Family history. Conditions that are genetically linked, such as cancer, heart disease, high cholesterol, or diabetes, may cause your term life insurance rate to increase.
In most cases, the insurance underwriter will request a detailed medical history from you as well as the results of a recent medical exam before approving your policy and determining the premium.

Lifestyle Considerations

Regardless of your health, certain lifestyle choices may increase your risk of early death. These choices include heavy alcohol consumption, drug use, a history of smoking, involvement in risky hobbies and danger-prone work. For anyone who has these factors, the insurance underwriter will likely raise your term life insurance rate.

Other Factors

In determining your premium rate for term life, insurance companies may also consider factors that could contribute to an early death, such as a bad driving record or a criminal history.

Compare Premiums From Multiple Providers

To find the best term life insurance rates, you can research online the available plans to compare benefits and premiums. The Gerber Life Term Life Plan allows you to choose from coverage amounts of $25,000 to $150,000, and term durations of 10, 15, 20, or 30 years. The rate for term insurance is fixed, so it’s guaranteed to remain the same for the life of your initial term.

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