Wednesday, 13 April 2016

RIG QUOTE.

Life Underwriting - Understanding Rate Classes «  Right Quoter When purchasing life insurance one must go through the underwriting process.Underwriting refers to the process that life insurance companies use to determine both a prospective client’s eligibility to qualify for a life insurance policy and at what rates. Factors looked at include such things as health, lifestyle, and family history. Health details are gathered from a medical exam paid for by the life insurance company. In some cases a company will also order a clients medical records.The result of the underwriting process is determination of a prospective customer’s category rating. These category ratings will determine how much a customer has to pay for their life insurance policy. Although the terminology may differ from company to company typical categories are as follows: Preferred Plus, Preferred, Regular Plus, and Regular. There are usually special categories for smokers such as Preferred Tobacco and Standard Tobacco. Example: Joe is 30 years old and wants a 10 year term life insurance policy with a death benefit of $100,000. Below is what he would have pay monthly depending on which category he was placed into during the underwriting process with a typical insurance company.Preferred Plus - $8.14 Preferred - $8.84 Regular Plus - $9.71 Regular - $11.03 And if Joe was a smoker:Preferred Tobacco - $14.53 Standard Tobacco - $17.50 The items looked at in the underwriting process vary by company and product. But typically details include one’s blood pressure, cholesterol, driving record, height, weight, and the health history of immediate family members.The above information pertains to fully underwritten life insurance policies. The exception is for policies issued without a medical exam. These policies are often referred to as non-med or no medical exam life policies. As the name implies these policies skip the medical exam during the underwriting process. Non-med policies are often more expensive than a fully underwritten insurance policy. But, they are sometimes preferred as the underwriting process is much faster. In some cases policies can be issued in as little as 24 hours. This is in contrast with fully underwritten policies which can often take several weeks to be processed.Life Underwriting - Understanding Rate Classes «  Right Quoter When purchasing life insurance one must go through the underwriting process.Underwriting refers to the process that life insurance companies use to determine both a prospective client’s eligibility to qualify for a life insurance policy and at what rates. Factors looked at include such things as health, lifestyle, and family history. Health details are gathered from a medical exam paid for by the life insurance company. In some cases a company will also order a clients medical records.The result of the underwriting process is determination of a prospective customer’s category rating. These category ratings will determine how much a customer has to pay for their life insurance policy. Although the terminology may differ from company to company typical categories are as follows: Preferred Plus, Preferred, Regular Plus, and Regular. There are usually special categories for smokers such as Preferred Tobacco and Standard Tobacco. Example: Joe is 30 years old and wants a 10 year term life insurance policy with a death benefit of $100,000. Below is what he would have pay monthly depending on which category he was placed into during the underwriting process with a typical insurance company.Preferred Plus - $8.14 Preferred - $8.84 Regular Plus - $9.71 Regular - $11.03 And if Joe was a smoker:Preferred Tobacco - $14.53 Standard Tobacco - $17.50.The items looked at in the underwriting process vary by company and product. But typically details include one’s blood pressure, cholesterol, driving record, height, weight, and the health history of immediate family members.The above information pertains to fully underwritten life insurance policies. The exception is for policies issued without a medical exam. These policies are often referred to as non-med or no medical exam life policies. As the name implies these policies skip the medical exam during the underwriting process. Non-med policies are often more expensive than a fully underwritten insurance policy. But, they are sometimes preferred as the underwriting process is much faster. In some cases policies can be issued in as little as 24 hours. This is in contrast with fully underwritten policies which can often take several weeks to be processed.

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