Calculating Insurance Premiums
Insurance companies never take risks when setting the rates that you will pay for an insurance policy. They try to ensure that you won't die unexpectedly.
Insurers especially scrutinize whether you suffer from any of the risk factors such as smoking tobacco, cholesterol levels, obesity, diabetes, and other conditions that could lead to poor health and a quicker death.
After they estimate the potential of these risks, insurers will designate your status (preferred or standard) based on your age, gender, health, and this status determines the amount you will be required to pay for your life insurance.
To determine your health status, you will have to give your medical history and undergo a physical exam. Make sure to fill accurate details in the health questionnaire. If you supply them with incorrect information insurance company could cancel your insurance policy.
However risk factors such as gender or age cannot be controlled. Women generally have a longer life than men, so women have lower rates on life insurance. A man will pay a lower rate on an annuity. As regards the age factor, younger people will pay insurance premiums for a longer period till they are likely to die but because they are healthier, pay a lower rate than an aged person is. Your family medical history and lifestyle can play a major role in maintaining or ruining your physical condition.
A doctor chosen and paid for by the insurance company will take your physical exam. He will check your weight, blood pressure and other vital signs. X-ray or EKG, blood and urine samples will be taken and tested for any sign of disease, especially for HIV virus, cholesterol level, and for any indications of diabetes, kidney problems, hepatitis and other problems. Samples can also tell of nicotine content, medications and also whether illegal drugs being taken.