A life insurance rating is a statistical formula that insurance companies use in order to base the premium payment for a life insurance policy. Since the insurance company is going to pay out when the insured dies they base their premiums on probabilities.

For example, it’s statistically proven that men are going to die before women so their premium payments are going to be higher than that of a woman of same like health status and age. Using the statistics and analysis they are able to write insurance policies to make a profit while still offering the coverage to the policyholders.

Everyone wants to pay less for their insurance so here are some things that can help you make your rating better and make decisions when you’re choosing your life insurance policy.

Weight to Height Ratio

You’re going to want to take into consideration your height to weight ratio. For example, someone that is the same weight as you but taller is going to be more height/weight proportionate while you at the same weight but shorter are possibly considered to be overweight. If this is the case you’re likely to pay more in premiums. The reason for this is that when you’re overweight there is the statistical likelihood of you having a condition that is life threatening than the person of the same weight but is proportional. On the same token though if you are underweight you might be looking at more in premiums too as that can also cause costly conditions.

The Bad Habits

Think about all of your bad habits as those affect your premiums drastically. A few examples being:

• Cigarettes
• Drug Abuse
• Excessive Drinking

Health Issues

Your rates will be high if you have had or currently have an illness that could result in your death. Things like:

• Cancer
• Heart Attacks
• Coronary Disease
• More

These types of things are what makes a company decline an individual or raise the premium. Those that have had a past disease but have beaten it may be paying a higher premium even if they are still symptom free.

Considerations

If you are someone that works in a hazardous occupation you should expect to pay higher premiums than someone that doesn’t due to the fact that your statistical probability of death is higher than someone with a “normal” job.

The company may just add a flat rate a lump sum or could increase your rate per thousand for coverage. If you should quit the hazardous job you can ask the insurance company to reconsider your additional sum and they may then lower the premium amount you are paying.

Riders and Waiver of Premium

Any riders or policy fees will be on the top of the premium you’re paying. Any additional types of insurance are going to be added to the premium as well; such as, family coverage or a waiver of premium.

No matter the amount of insurance coverage that you purchase the policy fee is going to remain a constant.