Level Premium Term Life Insurance - Term Life Insurance

Ask Mint | Diabetics may have to pay more premium Livemint

20.04.10

How do life insurers decide how much life cover to give? Does it entirely depend on how much premium I am ready to pay?

—Argho Ghose

There are many criteria that determine the cover offered by a life insurer. The insurance cover depends on the income of the person, whether the person already has a life insurance cover, the risk assessment of the life to be insured, the customer’s current health status, age, ability to pay the premium and the amount of sum assured asked for. These factors together determine the amount of insurance to be granted.

I am 40 years old and am diabetic. I want to take life insurance, but am afraid I won’t get one or I may be charged a very high premium. Is it so? Please explain the process of getting a life cover for people who have a pre-existing disease.

—Bhavna Singla

In case the applicant is diabetic, the issuance of a life insurance cover depends on various parameters, such as the extent or level of diabetes diagnosed. In all probability, the cover is issued to the person, but the premium charged could be on the higher side. The amount of extra premium will depend on the level and type of diabetes. If a person has a pre-existing disease, the life insurer determines the extent of the same through medical tests. Depending on the intensity or extent of the disease, the life insurer will suggest a higher premium amount depending on the health risk assessment.

Source:

30 Year Term Life Insurance Policy

I am already 58 years old. Can I get a 30 year term life insurance at my age?

Johnson

Dallas Texas

Getting a term life insurance at your age will not be a problem. If you have not considered a permanent life plan because of its cost, then, a term life is good enough. Being 58 may be quite expensive for a permanent life policy but you’ll get a lesser premium by choosing the 30 year term life insurance. For someone closer to retirement, you will have to pay a higher rate compared to someone who is younger. This is because at your age, it is a fact that illnesses and even serious medical conditions are already making people suffer.

It is always a good decision to have insurances since life events could become highly unexpected. For someone your age, a 30 year term life insurance can still be renewed once the period is over. Many companies would accept renewal until the age of 95. Remember that at that point, your insurance rate will be very high even if you are still insurable.

Term life insurances from some companies have adjustable premiums. Meaning, it could go up or down depending on how well the company is performing. If you want this kind of protection, ask the agent first before signing the contract. You do not want to be caught unprepared sometime in the future. But if want a level fee for all of the 30 year term life of the policy, go for the company that do not depend on income fluctuations.

Some term life insurance policies are convertible to a permanent life insurance when the insured reaches the age of 75. This is, of course, at your discretion. You can also drop the policy if you want to. By that time, you may want a coverage that will allow you to leave some amount of money for your loved ones in the event of your demise.

Source: Life Insurance Dallas - Dallas Life Insurance

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