The purpose of life insurance is to manage risk. Individuals and families need protection in the event a primary bread winner passes away.
Several factors drive what life insurance costs for an individual. Women tend to live longer, so their cost for life insurance is lower than it is for men. The healthier a person is, the less expensive it is for them to obtain life insurance. People who smoke pay significantly more for life insurance.
Each person’s health situation is unique. Part of the process of obtaining life insurance is to collect medical samples for testing. The underwriter reviews records from your doctors over the past 5 years. They also examine driving records.
Once all of the information is collected the underwriter evaluates the data at hand and assigns the insured person a health rating. The better the rating, the lower the premium you pay.
So how much of an impact do health issues have on a person’s ability to afford life insurance?Continue reading “Diet, health, and the financial impact on life insurance”