When is the right time to buy a life insurance policy? How can I purchase life insurance at an affordable price? Which company should I select to buy an insurance policy? These are some questions that may trouble you when you plan to purchase an affordable life insurance policy? Well, let’s start with the first question. Today is the right time to apply for life insurance, and it’s not a piece of advice. It’s a fact. Now, you must be wondering to know why?
Let us explain this with the help of an example. Let’s suppose you are 25 today- a younger and healthy personality than you’ll be tomorrow. No time is better to buy a life insurance policy when you are young and healthy, says Insurtika – one of the largest life insurance companies of 2021. Many insurance companies prefer to charge lower premiums from young policyholders. It’s because of a theory that’s quite popular in the insurance industry. It says a healthy and young policyholder can pay for their premiums in the future for years, even decades. It’s the real secret behind getting an affordable life insurance policy. You get a policy at a lower rate, and the insurance company gets a low-risk customer- it’s a win-win situation for both. Isn’t it great? But before you rush to call any of the top 5 life insurance companies in the US for quotes, there are a few more details that you must know.
Not all life insurance companies follow the same procedures to create life insurance quotes.
A quote gives an estimation of the coverage premium that the policyholder needs to pay. But premium calculations depend on a rate class. You seem confused. Are you? If so, then continue reading the post to clear your doubts.
Generally, the best life insurance companies rely on life insurance rates for the calculation of coverage premiums. A life insurance rate class is a group of policyholders who bears the same amount of risk. It means a young and healthy policyholder will get the best rate class. It’s a rate class criterion that varies from company to company. Some of the a-rated life insurance companies follow strict rules to set their rate class criteria. Each company has a different definition of healthy. For example, some might consider people with no pre-existing condition healthy, while others may consider if you are away from addictions of any kind. It varies company-to-company.
So just because you are young, it doesn’t mean you’ll get affordable insurance rates. Then, how is it possible? A life insurance company uses different systems of classification to determine an individual’s health statics. Well, sharing this information is the sole right of a company. Some may share these details, while some will not.
But in the spirit of transparency, Insurtika– one of the top 10 life insurance companies in USA would like to inform you how it works to help you get life insurance policy at affordable price in USA.
What you’ll get in this article?
- Know about life insurance rate classes and how do they work?
- How to use insurance rate classes to compare life insurance quotes?
So, let’s get started!
Know about life insurance rate classes and how do they work?
Everybody thinks they are unique and owns a one-of-a-kind personality. Well, it’s a universal truth. But it doesn’t go with a life insurance company. There are certain limits that an insurer can impose to determine your health statics, and based on those details you will be placed in a group of individuals sharing the same level of risk. These limits may cover your age, medical history, hobbies, or any issue that may arise during the life insurance medical exam. Those groups are called life insurance rate classes. You can imagine rate classes as a spectrum with high-risk to low-risk criteria.
The lower your risks, the lower are your premiums, and vice-versa.
Again, it varies company-to-company. It means, if you can become a low-risk policyholder for one company doesn’t mean you’ll also get the same rate class with other company. For example, Insurtika – one of the best life insurance companies in the USA categories risks based on five rate classes which include,
- Preferred Plus
- Standard Plus
In any case, if you don’t fit in any of the categories mentioned above then you may fall under a substandard or table category, which is a broader category. If you wish to know about these categories in detail, let us know via comments.
How to use insurance rate classes to compare life insurance quotes?
If you are aware of your health and know the amount of coverage you need, you can choose any company from the list of United States insurance companies to get your quotes. But how will you get information about their rate class? What are their underwriting rules? How will you decide whether you are getting the lowest rates or not? As answers to these questions will help you determine whether your life insurance quotes will match your estimated price or not. However, if you wish to know some tips to get affordable quotes, then click on the link given below.
If you are thinking about asking your agent for the rate class details, it’s a 50-50 chance of getting the information. Some companies may tell you while some may not prefer to give their confidential details, because of competition. Now, the question arises, what you can do in such a case. It’s simple. Call Insurtika – one of the top 10 insurance companies in the USA to get the best quotes.
If you are young and healthy, then there are high chances that you would fit into the low-risk rate class, which means you may pay the lowest premiums for coverage. To achieve your goal of getting the lowest life insurance quotes, get in touch with Insurtika. We already give you an idea of how our rate classes work, but if you are still confused or want to clear your doubts, get in touch with us immediately. We’ll help you purchase life insurance policy at affordable price that will suit best with your family’s financial needs.