Determining the policy and coverage
There are two ways to determine the policy and coverage. One is permanent and the other one is term life insurance. Permanent life insurance provides the coverage for the rest of your entire life. Term life insurance coverage is for a set of period of time. After you decide one of the above you have to decide how much you can spent on it. Next one is what are the benefits you may receive with your insurance coverage.
You have to fill the documents which you receive from your insurance provider. In will ask about your life completely such as age, height, weight, habits (such as smoking, drinking, sports, etc.), financial situation (such as your annual income). Do not tell lies for these questions. If you tell lies insurance provider will reduce your benefits or coverage. Most of the insurance companies suggest you a medical, physical examination by their registered professional. (paramedical - company owned license healthcare medical professional) This paramedical may doing following tests.
- medical history (medical conditions, medications and surgeries)
- immediate medical history of your family
- blood pressure
- heart beat check
- measure weight and height
- blood sample test
- urine sample test
- asking about your habits
- some other tests depend on your policy benefits and age.
After collecting such information, insurance company will check the results and answers. If there any further detail required, it will be requested from your physician. This procedure will help the company to estimate your premium and cut down your benefits. Otherwise company will face a financial risk. If anywhere you lie on your medical conditions, not only insurance company deny your request of coverage but also you may under go on a "red-flag". This flags other insurance providers that you lied.
After the application and medical examination has been reviewed, insurance provider decide whether approve or deny your request. Several days or weeks can be taken for this process.
What will affect your insurance premium?
Smoking - If you are a heavy smoker, insurance company do not assume you will live long. Therefore company could not able to collect your premiums for a long time. Therefore they will increase their premium.
Weight - Higher weight might result for high cholesterol, high blood pressure and higher risk of diabetes.
Alcohol intake - Drinking make some potential of health risk.
History of driving - Insurance companies concern about your previous violations of driving rules and accidents. If you have a higher rate of violations they they will increase your life insurance premium.
You are able to decrease the life insurance premium by considering above factors and reduce risks. But if it could not able to control you can go for other non-lifestyle related ways to reduce your life insurance premium.
Change from permanent to term life insurance - Depending of your age and the term you should cover your life with an insurance if you are able you can go for term life insurance policy. This can reduce the premium amount.
Choose a more cheap insurance provider
Reduce riders - Riders are optional policy provisions which will increase your monthly premium. (I.e. accidental benefit rider, children's term life insurance rider, waiver of premium rider, living benefits rider, payer rider, etc.)
Go for a no-load or low-load policies.
If you pay annually some insurance providers give you discounts.