Maryland Life Insurance Rates
When applying for Maryland life insurance quotes online, or completing a physical life insurance policy application form, you will definitely be asked to state under which rate class you wish to apply. But what do they mean when they say “Maryland life insurance rate?” Well, this is the fixed premium payments that a person makes for life insurance coverage.
Maryland life insurance rate classes and the underwriting process
There are numerous classes of life insurance and their rates in Maryland. Every person applying for a life insurance policy wishes to qualify for the best available rates so that their monthly, quarterly or annual payments can be kept low. Note, other than going through the criteria used for varied life insurance rates qualification and determining the ones you are qualified for, there is very little you as a person can do, apart from hoping that you qualify for the best rate.
Basically, Maryland life insurance rates and their classes are determined by insurance underwriters who go through a long underwriting process. During the process, the outcome of a client’s physical examination, health examination, family health history, driving history, lifestyle habits, age, sex and the nature of his or her profession and any other supporting evidence and documents are all keenly scrutinized by the underwriter.
Remember, you should never lie when completing your life insurance application form, as the lies will eventually be unearthed. If this happens, it could permanently affect your chance of getting a good life insurance policy. Worst of all, if the lie is discovered after you are long dead; the life insurance company is justified to refuse to pay the accrued benefits to your family. Based on the scrutiny, underwriters are able to come up with an estimate of the number of years you are expected to live (a client’s life expectancy). The longer a client is expected to live, the lower the life insurance rates.
Maryland life insurance rates and the qualification criteria
Before buying any insurance policy, it is recommended to first spend some time understanding the qualifications associated with a particular class of Maryland life insurance policy. This is so that you can apply for the one that suits your unique needs. Doing this not only guarantees you get the right quote, but it can also prevent future disappointments. Remember that these qualifications vary from one insurance company to another. Analyzed below are some qualification criteria as employed by different life insurance companies in Maryland.
- Standard life insurance rates: These rates are suitable to those with minor health problems, for instance, high cholesterol or those who are slightly overweight.
- Preferred-plus term life insurance rate: To qualify for this rate, an applicant should not be using tobacco in any form, or have a history of alcohol and drug abuse, or engage in hazardous activities whatsoever which can shorten the lifespan. According to the available actuarial tables, people who live the longest are the ones who don’t engage in these aforementioned activities, thereby qualifying for the lowest available premium rates.
- Preferred life insurance rate: So as to qualify for this life insurance rate, you are required to avoid participating in hazardous activities and be in excellent health.
- Substandard life insurance rate: This type of a life insurance rate is suitable for those people who have major health issues. And since their longevity is in question, the chargeable premiums are relatively higher compared to other rates.
It is good to note that even when in perfect health, there is chance that a person will not qualify for a good premium rate. This is because underwriters consider several factors in tandem before coming to a final conclusion. In actual fact, only 5% to 40% of applicants qualify for preferred-plus life insurance rate. In general, approximately 60% of applicants qualify for regular preferred life insurance rate. The other life insurance applicants qualify for the standard category of life insurance rate.
Getting better Maryland life insurance rates
A person may only qualify for a standard life insurance rate with one insurance company, but may qualify for the preferred life insurance rate in another. So unless you extensively shop around for a good life insurance rate, it is very difficult to get in touch with a company that will offer you a better rate. To enhance the chances of qualifying for a better Maryland life insurance rate, start by a change of lifestyle, for instance by losing excess weight, having a clean driving history, stopping tobacco usage, and so forth.