Most people don’t understand the value of life insurance until they reach age 60 and over. If you are in this age group, you should know that the rates available on life insurance for people over 60 are determined by certain risk factors which include health status, age, lifestyle habits, and occupation/profession.
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The insurance company will look at your health history to determine your premium. As an applicant over age 60, you will most likely have to present your medical records when applying for a policy. You might also have more difficulty getting approval for larger death benefit amounts. In addition, the company will consider common health conditions such as increased blood sugars, blood pressure, and cholesterol levels. If the insurer decides that your medical history is too risky because of a chronic disease or any other potentially deadly health problem, then you’ll have to pay higher rates.
Bear in mind that people with diabetes are the only exception when it comes to life insurance for seniors over 60. You can get a better rate class if you are diagnosed with the disease at an older age.
This is a strong determining factor for insurance rate. The younger people will pay lower premiums because it is assumed that they have a longer life ahead. Unfortunately, the premiums will increase significantly from year to year once you reach 60. The insurance company charges old people a higher sum to compensate for the potential risk that they will incur. This is because there is a higher probability for a claim to be filed after just a few premiums.
If you have bad habits such as smoking and drinking alcohol, then you’ll pay more for life insurance coverage at 60. Naturally, you can understand the smoking factor as there is shortened life expectancy and health risk associated with this habit. In fact, it is common for smokers to spend more than two times as much as the non-smokers to get comparable coverage. As for the drinking, alcohol can also have a negative impact on your health. An insurance company will view you as a risky candidate if you are a heavy drinker.
The premium on your life insurance can be affected greatly by your job since some professions are considered riskier than others. Some professions might be such a high risk that the insurer might even deny the coverage due to the high probability for accidental death. Some of the dangerous profession include coal miner, police officer, construction worker, soldier, airline pilot, and so on.
These are some of the main factors that the companies consider when determining the rates of life insurance for people over 60. It is important to use the factors above to evaluate your profile and choose an insurance provider that is less likely to charge you higher premiums.