Why Cheap Term Life Insurance Isn't Always So Cheap

Why Cheap Term Life Insurance Isn't Always So Cheap

You've heard a lot of talk about cheap term life insurance and you've decided that it's something you need to start investigating. That's definitely a step in the right direction. Like so many other tasks in life, you've turned to the Internet to get the ball rolling.

You've filled out numerous online applications for cheap term life insurance but as the quotes start to come back you're realizing that term life insurance isn't really all that cheap. What's going on?

Your health matters

A couple of factors might be causing higher than anticipated costs. First and foremost is the general state of your health. Getting an online quotation is one thing, but pricing an actual policy after the insurance company has reviewed your medical history is really what determines your true costs for your insurance.

Very rarely will an individual get life insurance without first having a medical examination. Getting a policy through your place of employment is the only time this may happen, but generally in this situation, your coverage will be minimal.

If you're looking for cheap insurance that'll actually be of financial value after you're gone, you'll likely have to supplement the policy you get through your job.

Let's take a look at the logic for a moment. If given the choice, life insurance companies would select as customers only those whose health is excellent. Excellent health means you should live longer. When you live long there is less chance that the insurance company will have to pay out your policy's death benefits.

In other words, if you outlive your cheap term life insurance policy, the insurance company comes out ahead. The company has collected your premiums, but it did not have to give any money back to your beneficiaries.

The categorization system

When determining the true cost of a policy, insurance companies use a classification system. Individuals with a clean bill of health generally get classified as "super preferred" and get the lowest-priced premiums. They're the ones who get the lowest rate premiums on their insurance. Several more categories exist and, unfortunately, each category comes with a progressively higher premium.

Some of the health conditions that raise a red flag in the eyes of an insurance company include use of tobacco products, being overweight, high cholesterol, high blood pressure, and a history of cancer, stroke, diabetes, heart disease or other type of chronic disease in your family, even if you do not have any symptoms of these conditions.

If you do have symptoms of the above conditions, you should expect that a lower rate premium isn't something for which you'll qualify.

The types of medical conditions listed above are more likely to cause premature death in an individual. If the insured individual dies during the policy term, the insurance company will have to pay out death benefits. And that's what life insurance companies look at when deciding whether or not an individual qualifies for cheap term life insurance.

Looking for low-cost Life Insurance try Term Life Insurance. We compare 95% of the UK market to find you cheap term life insurance without compromising on policy benefits and features.

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Why do you protect the TV but not your family

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Click on the link below

http://www.lifehappens.org/videos/anthony-anderson-story

Anthony Anderson’s Personal Story

You may know Anthony Anderson from his hit TV show black-ish and as host of Eating America. But this September he’ll be taking on a new role as the 2015 national spokesperson for Life Insurance Awareness Month.

The annual campaign, which takes place in September, is coordinated by Life Happens to encourage the more than 100 million Americans who do not have adequate life insurance to get the coverage they need.

As spokesperson for the campaign, Anthony will share his personal story of how he and his family were directly impacted life insurance.

As a young boy growing up in Compton, Calif., Anderson saw the importance his family placed on life insurance. While his parents didn’t have much, they did have Mary—or as Anthony’s family called her, ‘The Insurance Lady.’ Mary was a fixture in the Anderson home, visiting the family throughout the year to review and update his parents’ life insurance policies. She even sold Anthony his first life insurance policy when he turned 18.

Now, a husband and a father, Anthony understands why his parents made life insurance a priority, and has made it a priority for his family to be protected.

“Even on their limited income, my mom and dad instilled upon all of us the importance of planning for the future and the fact that tomorrow isn’t promised to anyone,” Anderson says. “I know how hard it is to lose someone you love. An accident took my brother when he was 26 and shortly after, I lost my father to diabetes, a disease I, myself, live with today. It was rough getting through those deaths, but the fact that they both had life insurance made it so much easier.”

Life Happens does not endorse any insurance company, product or advisor. ©Life Happens 2015. All rights reserved.

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