Several factors called the underwriting factors affect the cost of life insurance which includes among others the age, state of health and occupation of the person that seeks to be insured. Generally, the higher the risk involved, the higher the premium would be. Cost will also be affected by the desired amount and length of coverage. A person becomes “uninsurable” when a certain age is reached especially when combined with sickness. A hazardous occupation such as a pilot entails a higher premium than that of a regular employee because of the considerable amount of risk involved. Other factors that can be considered are the driving history and dangerous hobbies that one has engaged in, if any.

Aging is closely associated with health risks which explain the higher cost. Insurance companies usually assign an insured under a specific category which can either be standard, preferred or preferred plus. Most people fall into the standard category which includes all those that do not have any serious health problems. Those that have better than average health and have absolutely no history of health problems are included in the preferred category. The preferred plus category include the very few individuals that have an outstanding history and thus qualify for extra low rates.

Personal health factors that would cause a person to be classified as a higher risk includes history of major health conditions such as cancer, diabetes, heart disease, high blood pressure and high cholesterol levels. History of alcohol or substance abuse as well as tobacco use, can also make one classified as a higher risk. So does family history of major health problems and being overweight. The definitions of standard and preferred risks may vary from one insurance company to another.

Life insurance underwriting has not changed much in the last 30 years with regards to the procedure involved. The application process can be paper-intensive and may be intrusive for people who value their privacy. Underwriters typically question the details of a person’s lifestyle, intended foreign travel destinations, family and personal health history and some other matters that would help determine the risks involved in insuring a person.

Multiple interviews may be required in some cases. Most policies require certain acceptance guidelines that have to do with lifestyle and health history although some life insurers allow coverage for a maximum amount without a medical examination. Fraud and misrepresentation are big and expensive problems associated with the industry. It is important especially for those who are tempted to fudge on answers or withhold information to know that it is a crime to lie about or conceal information on a life insurance application. Policies obtained through fraud can also be voided at claim time.

Related Link: Health Insurance Quotes are easy to compare at www.gohealthinsurance.com from a variety of reputable insurance carriers in every state.

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