Regular Smokers Life Insurance Rates Oklahoma OK

Reader’s Question:

Would there be a difference on my life insurance policy if I smoke regularly? I’m planning to get coverage due to my job here in Oklahoma soon.

Mitchell

Norman, OK

Yes, there will be a difference, a very big difference in the amount of life insurance premiums you would have to pay, if you are considered a smoker. Call up any life insurance agent there in Oklahoma, or go to any life insurance portals on the Internet to run a quote check and you will notice that, if you answer “Yes” to the question regarding smoking, the resulting life insurance premium quote would be about three to four times bigger.

Most people understand the serious implications of smoking and what it does to your health and your life span in the long-run. What most probably don’t realize is that life insurance companies considers several factors in creating a customer’s risk profile, and consequently their life insurance rates.

Anything that jeopardizes your ability to stay healthy and have a long life such as dangerous habits, hazardous work conditions, and unhealthy lifestyles, such as smoking, would be reason enough for the life insurance providers to see you as a “High-Risk” customer, with a higher probability of having to pay your beneficiaries huge death benefit sums sooner. So life insurance providers compensate for this increased risk by charging bigger, and you know what? While they make more money out of you, they actually pass along the savings and discounts to those who don’t smoke!

So not only would you be paying high medical bills due to smoking-related complications in the future, it also seems that you are subsidizing the life insurance coverage of non-smokers! (It’s almost always never too late to quit smoking.)

 

Tags: smokers life insurance, life insurance rates, high-risk life insurance, life insurance advise

Life Insurance Premium Computation Oklahoma OK

Reader’s Question:

I am choosing from a few life insurance providers here in Oklahoma, and I would really like to know how life insurance companies compute for rates or premiums.

Charles

Norman, OK

Of course each and every life insurance company has it’s own system of determining your exact premiums or rates but it’s safe to say that there are a few, specific factors that is generally used to determine consumers life insurance premiums.

1. Mortality rates – The last thing that a life insurance company would want is to pay death benefits within the first few years of a life insurance policy. This means that insurance providers would be asking some information to assess your risk of costing them money if they decide to give you coverage. Every year life insurance providers use mortality tables that helps them determine how much money to set aside to pay for total death benefit costs and this has an impact on how much you pay, the older you are the higher your rates will be since the risk of death is higher.

2. Health – Similar to reasons why mortality rates are used, your health and family’s medical background has a major influence on how your rates are determined. You can even be denied coverage there in Oklahoma if you have a severe medical condition or illness.

3. Interest and Expenses – Of course it’s still a business so it’s hardly surprising that the life insurance company’s expenses also play a role in your overall premiums. Also, life insurance policies may earn you interest based on its cash-value, so your regular premiums may reflect how much cash-value you have to attain in order for your money to earn interest, and the for the company to earn profit.

Tags: Life insurance premiums, cheap life insurance, life insurance policy, advise