What criteria would one use in a term life insurance rating?

Term life insurance ratings are determined by insurance companies based on various criteria that assess the risk associated with insuring an individual. These criteria help insurers predict the likelihood of a policyholder passing away during the term of the policy. The primary factors considered in term life insurance ratings include:

Medical History:

- Existing medical conditions

- Past medical history

- Current treatment & medications

Lifestyle Factors:

- Tobacco usage: Smoking or vaping can significantly increase insurance premiums.

- Alcohol consumption: Excessive alcohol intake may impact the rating.

- Drug use: Illegal drug use or substance abuse can affect insurability.

Family Medical History:

- Premature deaths (before age 60) due to specific illnesses in close relatives ( i.e.. heart disease or certain cancers) might indicate a higher risk.

Occupation:

- Certain hazardous occupations increase the risk level ( i.e.. firefighters, law enforcement, high-risk construction workers etc).

Hobbies/ Recreational Activities:

- Extreme sports such as scuba diving, rock climbing, skydiving ,etc. increase potential risk.

Weight and Body Mass Index (BMI):

- Obesity or being severely underweight might imply heightened health concerns.

Age:-

Insurance premiums generally rise with increasing age due to age related risk factors

Gender:

- Some insurance companies charge different rates based on gender due to statistical differences in life expectancy for men and women.

Remember, not all insurers apply these criteria the same . Underwriting guidelines and risk profiles may vary, leading to slightly varying rating structures among insurance providers. Therefore , it's important to compare terms life insurance quote from multiple companies to find the most optimal premiums based on individual circumstances.