Life Insurance – How is the Price Set
Life insurance is priced based on your life expectancy, the face amount you request and the length of the policy, whether it’s for whole life or term life.
Past and present health conditions impact your life expectancy therefore insurers would want to know your health condition. Common conditions such as high blood pressure, heart disease, obesity, cancer and depression may be causes for a turn down or can raise your premiums.
Based on medical history, the person may be categorized as: preferred plus, preferred, standard and substandard, and this will determine the premiums. Insurance buyers with severe health conditions will find it hard to get life insurance.
