Tern Life Insurance Texas: Interested in Texas Term Life Insurance before rates rise?
July 15, 2009
Term Life Insurance Texas: Are you interested in Texas Term Life Insurance before rates rise? We can give you a quick quote by phone or you can use our easy online quote application.
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Premiums on the Rise
http://online.wsj.com/article/SB124614721578265053.html
After nearly two decades of falling prices, term life-insurance premiums are heading up.
Many insurers started raising prices on term policies by 5% to 15% earlier this year, particularly for specific terms and policy amounts. They cite higher capital and reinsurance costs linked to tighter credit markets, which are making it costlier to maintain needed cash reserves, combined with lower investment returns.
Life expectancy isn’t a factor. But for the last several years, because of tougher reinsurance requirements, insurers also have taken a harder stance on medical underwriting guidelines, experts say. In the past, applicants might have been forgiven a little extra weight, for instance, and given a lower premium. But that’s no longer the case.
Agents are urging consumers who need new policies to rush in applications since not all insurers have imposed new pricing yet. It generally takes about 45 days to process an application.
What Matters…
Insurers usually require applicants for individual policies to fill out a medical questionnaire with questions about their health history and lifestyle — skydivers generally pay more, for example — and submit to a medical exam. (Some smaller policies, for $50,000 or less, don’t require medical underwriting.)
For those considering applying for a policy, here are some tips about the basic medical underwriting process to help you get the best results:
Insurers are mainly seeking clues about your risk of dying during the policy period. How much evidence they seek is generally based on age and the amount of the policy. Medical-exam results help to decide your rating classification, which helps set your premiums.
A basic medical exam usually consists of a blood sample, a urine specimen and body measurements. An attending physician’s statement also may be required. If you are older, have a history of health problems or are applying for a large amount of insurance, say, $1 million or more, the exam may be more elaborate — including chest X-rays, electrocardiograms and treadmill stress tests — says Teague Wright, executive vice president of Crump Life Insurance Services.
The lab tests screen for diabetes, hepatitis and HIV, as well as risk factors for heart disease and certain cancers. In addition, most insurers screen for illegal drugs, especially in the 35-to-45 age group, and evidence of nicotine use. Most insurers require people to be nicotine-free for at least 12 months to be eligible for cheaper, nonsmoker rates — and longer to qualify for better rates.
Test results are sent to MIB Group, formerly the Medical Information Bureau, a database where they will be held for seven years. (Get a copy of a report at http://www.mib.com/ )
…And What Doesn’t
In the past, taking prescription drugs for depression, anxiety, high blood pressure, cholesterol or asthma often resulted in an applicant having to pay higher premiums. But these days people on these medications commonly qualify for standard rates because insurers have found that taking these drugs generally presents no higher mortality risk, experts say.
To ensure accurate results, Ms. Wright suggests getting enough sleep, drinking plenty of water and fasting before the medical exam. Avoid excessive intake of salt, high-cholesterol food, caffeine and alcoholic beverages for at least 24 hours before the exam. Also avoid strenuous exercise the day of the exam.
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