life insurance policy is a one that runs throughout your life. Your dependants can therefore be guaranteed to receive a lump sum afetr your sudden or natural death. This type of life insurance may help towards funeral costs, the repayment of outstanding debts, e.g. mortgage or simply be a sum of money to leave your family.
When it comes to arranging your whole of life policy there are lots of different options to choose from depending on your needs. The amount you pay will depend on a number of factors such as your age, gender, smoking status, the amount of cover you require and your medical history.
Useful hints and tips
Here are some tips you need to bear in mind to get the best health ranking and the lowest rates:
1.Tell the truth
The whole truth is nothing else but the truth. If you think that leaving something shady out of your health history might help, you are wrong for two reasons.
i.Firstly, the insurance company will likely find out (it is reading your records, after all) and it will assume the problem is severe because you didn't mention it.
ii.Secondly, if you withhold information that the company regards as material, it could cancel your life policy.
Give your complete health story, but do it on your own terms and give the complete picture. Don't just say you have high blood pressure. Say you were diagnosed with high blood pressure five years ago and have successfully controlled it with medication. To the extent you give your insurer good, complete information and reduce the uncertainty, then, ultimately you're going to get a fairer price.
If your agent or broker knows what wrinkles might give you a problem, they will be happy to refer you to the insurance companies to take you on at a good rate.
2. Beware of your talk
Sometimes incomplete answers can paint a bad picture. And insurance dealers are trained to assume the worst. So be clear and complete in your answers. If you had a non-aggressive cancer removed from your face one time several years ago, don't simply say you had cancer removed. List the specific type and that it was done once with no recurrence.
Sometimes an application will ask the ever popular question, "Which of the following conditions have you been treated for?" Instead of just checking "chest pains," include the fact that it turned out to be indigestion and no follow up was needed.
3. Know the rules of the game
You have a right to ask what the [health] ranking is based on. There should be objective criteria. As a result, you really should shop a little. Because these criteria vary amongst insurance companies.
Find out what your ranking is with a specific company and why. It could be that something they don't know will improve your ranking and decrease your premium.
