You will be charged higher premiums for life insurance if you have had any previous injuries. Most people who pose a risk are listed under the “Rated acceptance Terms,” meaning that they are considered to be a greater risk than average and will have to pay higher premiums.
It sounds unfair, and it could be if you were injured in an accident. If you have had any injuries in the past, you will still be eligible for Rated premiums. Even if your medical records have been reviewed, most insurance companies will require you to undergo a medical exam. To avoid losing your chance at getting coverage, it is important to be truthful. The coverage you get now will pay off later for your family when they need it most. I would rather pay higher premiums right away than to cause stress for my family as a Rated candidate. My mother’s death was the worst experience in my life. My father didn’t have life insurance. My father didn’t consider the unthinkable, so we struggled to pay her funeral expenses.
Although few companies will require medical exams, most will, especially if you are a risk to their business. Most companies will request your medical records under your consent. They are usually happy with the results. However, if there is a history, the medical exam may be required. This can slow down the process of getting you coverage.
You are required to purchase life insurance if you have a mortgage or are currently closing a deal on a mortgage. Because it provides additional security for the lender, life insurance is required. Life insurance policies often pay a lump sum to your family members in the event that you die. This money is often used to repay the mortgage. Most companies will charge more if you include mortgage protection in your life insurance policy.
Different companies view mortgages differently. If you have “Interest Only mortgage” loans, you will need “Level Protection Life” policies. This is because you will require a ‘fixed-and-constant’ cash guarantee. This is because the Interest Only loans let the buyer pay off the interest first, and the capital later. Level Coverage Insurance covers the capital of the mortgage. Therefore, the capital later will be higher because the buyer only pays interest. The company is likely to charge higher premiums because the money you apply to your life insurance will be the amount you receive in the event you die. When mortgages are involved, the company pays for burial and mortgage. A Joint Plan is a good option if you have a mortgage or a spouse who is assisting you with the purchase of your home. This will reduce your premiums.
The premiums for married couples who are covered by Rated Premium plans will increase. The downside to Joint life coverage is the fact that it is no longer valid once one of the parties dies. The plan is sometimes called “First Life”, as it will either cover the policyholder or both in the event of a death. If the spouse dies without a policy, the coverage will be lost. This could cause more problems as the spouse may not be eligible for coverage.
However, premiums would be higher if coverage was available to the second person. You might also want to think about Critical Ill and Terminal Ill coverage if you have a mortgage. This will give you additional coverage in the event of an emergency. You might also want to consider separate policies over joint policies. Although you will pay more upfront, you and your spouse won’t be financially burdened in the future.
Michael Bens authored this article. For more great information about all forms of insurance visit our free online insurance publication the Gabae Insurance Source [http://www.Insurance.Gabae.com] to find the information you’re looking for!