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8 Terms & Conditions You Must Know Before Asking For Life Insurance Policy Quotes

Personal_Finance / Insurance Nov 12, 2020 - 07:03 AM GMT

By: Submissions

Personal_Finance

Life insurance is a booming market in the USA. About 600 companies offer life insurance policies. Despite this, the number of U.S. people having proper life insurance cover is very less. Only 54% of people have a life insurance cover.

In many cases, it is not enough. There is a common misconception that complete life insurance is expensive. On the contrary, it is very affordable. Also, people take life insurance as an alternative to long-term investment which is another bad practice. People need to understand that proper life insurance cover ensures that their family does not face financial instability if the insurer passes away.


If you have decided to invest in a proper life insurance policy, the first step is getting quotes from different companies. As stated, there are a large number of insurance companies. So you need to compare their policies, premium plans, and also general review.

Go for the one that gives greater coverage and comes with add-on benefits. Life insurance riders like an accident cover, sudden illness cover, and waiver of premium rider ensures that you deal with the untoward incidents of your life in a better way.

Having said that, you need to pay attention to some terms & conditions that these policies come with. Often people tend to ignore them which turns out to be a big mistake. In the insurance sector, companies are very vigilant about the person whom they insure. They need to make sure that their policies are not used unscrupulously.

Many people used to get themselves insured at the terminal stage of their illness. Their family used to claim it and often win it. It made the companies look for the loop-holes.

Many terms and conditions were included before insuring a person. Let us have a look at such 8 terms & conditions.

8 terms & conditions you must know before asking for life insurance policy quotes

  1. Age: Age is the biggest condition when you ask for life insurance policy quotes. It matters both in the case of complete life insurance and term life insurance. Generally, at a younger age, there are lesser chances of contracting deadly diseases and the body is in better shape.

 So, when you take a life insurance policy at a younger age, you need to pay a lesser premium. As you age, your health status is bound to deteriorate. This impacts your premium amount.

Most insurance companies deny insuring an individual who is already past 50 and with deadly diseases. So, always keep in mind that the insurance companies have a strict age-related limitation.

  1. Health status: Your health needs to be in the best shape. This includes your physical as well as mental health status. You will be asked to undergo different tests to get proof. Even common ailments like high BP, high cholesterol, and diabetes can be a determining factor.

That is because a person with these conditions is more prone to sudden death. Along with that, you may also need to undergo a psychological test to determine your mental health. Those who are found in the best of their health are insured on a priority basis.

  1. Family medical history: It is a well-established fact that certain diseases like diabetes, heart stroke, and cancer are hereditary. So, when you wish to get a term life insurance quote or a complete life insurance cover, it is one of the determining factors. If you have a family history of these, you may need to pay a higher premium.

 Many insurance companies pay emphasis on this part of your family members who have died a premature death because of these conditions.

  1. Gender: Life insurance companies do not discriminate based on gender. But, at the same time, if you are a female, you may get things done easily. That is because different researches have shown that women live longer than men. Also, in general, they stay more active and hence lesser prone to diseases.
  1. Lifestyle: Your lifestyle determines your age. If you are a drug addict, alcoholic, or chain smoker, you are bound to suffer from the premature onset of diseases. Also, these are the driving factors for some deadly conditions like cancer.

It creates a perception that you are not serious about your health condition. An unhealthy and unconscious person is least likely to get the priority of an insurance company. That is why your insurance company makes sure that you lead a healthy lifestyle before insuring you.

  1. Profession: While it may seem trivial, your profession is always a driving force in getting the insurance done. If you are someone in a sector with a higher accidental death rate, you may face some issue in getting yourself insured. You may have to pay higher premiums. Typically, people from sectors like aviation, mining, shipping, etc., face this issue.
  1. Driving record: You may not realize but your driving record also plays an important role in getting you a decent life insurance policy. If you repeatedly get parking tickets or over-speeding tickets, you may face some issues. Your insurance agent may confirm with the department of motor vehicles about your driving record. So, it is better to stick to the traffic rules. It will be safer for you as well as get you a better life insurance policy.
  1. Mode of taking the policy: When you take the policy offline, you need to know that you have to pay other added fees like the commission of the agent. It is not a hidden charge but a must-know term & condition. Unlike the online mode, you cannot take the policy for free.

Conclusion

Taking life insurance should be the first independent financial decision you take as soon as you start earning it provides you a cover against accidental deaths. If you are the sole breadwinner of the family, it is even more important.

However, you need to be aware of the different terms and conditions to get the best policy. Pay attention to leading a healthy lifestyle and that solves most issues. Otherwise, the policy underwriter may rate your application or reject it.

By Gremel Ebal

© 2020 Copyright Gremel Ebal - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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