Keep in mind that because we’re all different, your rate class will probably differ from someone you know...It’s best to understand all qualifications associated with the most common rate classes to make sure you apply for the right one.
Wheeling, IL (PRWEB) February 1, 2010
Byron Udell, term life insurance expert and founder of AccuQuote, a leader in providing term life insurance quotes to people across the United States, explains term life insurance rate classifications and reveals the common qualifications associated with each one.
When applying for a life insurance policy or when requesting a free life insurance quote, consumers may be asked to specify which rate class they wish to apply for. A consumer’s rate class depends highly on their health and lifestyle. During the underwriting process, all health and lifestyle factors that may affect a consumer’s mortality are considered. When underwriting is complete, an appropriate term life rate is determined.
“Keep in mind that because we’re all different, your rate class will probably differ from someone you know,” says Byron Udell, founder and CEO of AccuQuote. “It’s best to understand all qualifications associated with the most common rate classes to make sure you apply for the right one. By doing so, you’ll receive an appropriate rate quote.”
According to Udell, consumers should know the following qualifications associated with each life insurance rate class when looking for an appropriate rate quote:
- Preferred Plus – Preferred plus refers to consumers who are in overall excellent health. They do not use tobacco products, engage in drug or alcohol abuse and they do not participate in hazardous activities, such as private piloting or skydiving.
- Preferred – Generally, to qualify for preferred rates, consumers are in excellent overall health and do not participate in any hazardous activities.
- Standard – Standard risks refer to consumers who have some minor health impairments. “For example, you would most likely qualify for standard rates if you have elevated cholesterol levels or you regularly smoke,” says Udell.
- Substandard – This rate class is for consumers who have more than mild health conditions.
“Once your rate class is determined, your term life insurance rate will remain the same throughout the duration of your policy.” says Udell. “This is a great benefit for people whose health has declined since they first purchased their policy. On the other hand, if you believe your health and lifestyle has improved since the beginning of your term, ask a licensed life insurance agent at a multi-carrier brokerage firm to reevaluate your current situation.”
When applying for life insurance based on a specific rate class, avoid a common myth: Lying about your health and lifestyle will qualify you for a better rate. “If you lie on your life insurance application, you risk leaving your loved ones without the proceeds of your life insurance policy when you die,” says Udell. “The best way around lying is to contact a multi-carrier life insurance brokerage firm, like AccuQuote. AccuQuote’s agents will compare rates among top-rated life insurance companies to find you the best value in term life insurance. Remember, rates vary among the best life insurance companies.”
AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes with the personal service of unbiased life insurance professionals that can help answer questions, identify important issues, and make meaningful recommendations. The company offers consumers an extensive selection of life insurance options, including term life, whole life, and universal life, as well as selected annuities. The website has many handy insurance tools, including a life insurance needs calculator to help you figure out how much to buy, a glossary that explains industry terminology, a collection of articles that cover the basics about life insurance, and a blog which answer many questions about life insurance. For additional information or to get quotes for cheap term life insurance, please call 1-888-314-4455.