08 Feb Life Insurance Build Charts – Use the Right Company
Life insurance companies use build charts, or height and weight tables, to help determine someone’s class when anyone applies for a life insurance policy. It sounds simple enough, but it becomes complicated quickly. The complicated part starts with the life insurance companies not using the same build charts, and not all types of life insurance policies use the same build charts. These build charts affect how much your policy rates are by the category you fall into, or you may be declined due to the chart and any medical problems you might have. Now you can see how quickly it becomes more complicated than one might imagine.
Build Charts
When purchasing life insurance, your build is going to play a significant role in the decisions the underwriters make. Your build is the relationship between your height and weight, and how your weight is distributed. To do this, they use height and weight tables. These tables, or charts, are used to determine the minimum and maximum weight versus your height they will accept, and where you fall on the table determines which category they place you into, which determines your rates.
The build charts are used because they are associated with mortality rates based on the underwriter’s experience and the databases where they pull statistical information. If you are underweight or overweight, it can lead to higher premiums or a denial. They also take into consideration your co-morbid factors, and that means any other health issue you may have. For example, statistics from medical data shows that people that are overweight have a higher rate of developing diabetes, cardiovascular disease, heart conditions, high blood pressure, and a variety of cancer diagnoses. Statistics also show being overweight plus one or more of the listed conditions will shorten the person’s lifespan.
Ratings
The underwriters use the build chart information, any co-morbid conditions, age, gender, and lifestyle choices, such as smoking, to determine a rating or denial. If you are rated, you will be rated in categories like Preferred Plus, Preferred, Standard Plus, or Standard. As you might guess, the Preferred Plus is the best rating, and the Standard is the lowest rating. These ratings impact the cost of your premiums.
This all seems to make sense, but there is confusion here because not all life insurance companies use the same charts, not all underwriters have the same experiences or gather the same data. One more issue is the tables were designed for adults between the ages of 25 to 59, which make their usefulness dubious. Underwriting is not easy, and on can see into the future, so they use charts and data to make the most sophisticated judgment as possible.
There are two main types of life insurance, Term and Permanent. There is one more that is a combination of the two, but it is less sought out. When you look into buying a life insurance policy, you need to consider the amount of money your loved ones might need to help make up for your lost income, household debt, children’s education, funeral costs, and other expenses. Once you decide on the amount of life insurance you need, then you will want to determine which type of insurance will best suit your needs.
Term life insurance offers protection for a specific term of the policy, which is usually anywhere from one to 20 years. Term life insurance will not accumulate a cash value; it pays benefits as long as the premiums are paid and for the term decided on. A permanent life insurance policy is intended to provide benefits permanently and does not expire as long as the premiums are paid. Some permanent policies accumulate a cash value that can be used if needed after a specified amount of time. It is important to be aware that life insurance companies use different build charts, and they can also use different build charts for the different types of insurance policies.
Searching For the Right Policy
It’s important for you to decide on the right type of insurance policy you need and the amount your family will need if you are no longer there to provide for them. You should take into account where you may fall on the build chart and all the other factors considered by the underwriters when determining your rating. All of this adds up to the premium you will pay now, which you want to fit into your budget. At this point, you’re facing the process of searching for the right insurance policy with the right life insurance company. Making these decisions and searching for insurance is a drain on your time, outside of the confusion and procedures to follow. You don’t have to face it alone.
Use the Right Company
The best step you can make for yourself is to contact The Life Insurance Store, who is the answer to your life insurance problems. The Life Insurance Store is a life insurance comparison company that will help you determine the amount of life insurance benefit you need for your family, the type of life insurance policy that will benefit you the most, and find the right company for you to use. The Life Insurance Store agents are friendly and experienced. One will work with you to help you find the right life insurance policy with a rate that will fit into your budget, even if you are rated high risk or have been denied previously.
Call to speak to an agent or visit them online at the Life Insurance Store.com to start working on your life insurance plan for your loved ones. It will save you time and the frustration of trying to sort out the details alone.
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