Concerned about heading into retirement without adequate coverage? If your life insurance plan consists solely of FEGLI term life, the answer might be a definite yes! Given that your income typically peaks nearing retirement, your FEGLI coverage might fall short of providing your spouse with the means to maintain your shared lifestyle in the event of your passing. Before diving into the private sector for alternative coverage, it’s essential to have a grasp of what lies ahead.
Understanding How Life Insurance Underwriters Assess Risk
Upon applying for an individual life insurance policy, underwriters utilize specialized software to evaluate your mortality risk. This process helps determine whether you fall into one of the following categories:
- Preferred: Enjoying the best premium rates
- Standard: Falling within the average premium range Rated
- Rated: Incurring higher-than-average premiums “As nicotine-containing products can potentially lead to chronic health issues later in life, smoking or vaping may result in increased premiums.”
Factors Influencing Premium Costs
Apart from the policy type, underwriters take into account specific variables:
Age and Gender: Younger applicants typically secure lower premiums, and women, statistically, enjoy longer life expectancies, thus often securing lower rates.
Personal and Family Health History: Certain health conditions may lead to higher premiums, and hereditary health issues, such as high blood pressure, diabetes, or cancer in the family, can also impact costs.
Tobacco Use: Given the potential health risks associated with nicotine, smokers or vapers may face elevated premiums.
Lifestyle Choices: Excessive alcohol consumption, sedentary habits, or engaging in risky activities like rock climbing or skydiving can adversely affect insurance applications.
Coverage Amount: Underwriters scrutinize the applied coverage amount relative to your income.
Preparing for Your Health Examination
Typically, the insurance company arranges for a nurse or physician’s assistant to conduct various assessments, including height, weight, blood pressure, and blood and urine samples. Depending on your age, additional tests like electrocardiograms or stress tests may be required. You’ll also need to authorize access to your health records.
Schedule your exam for the morning, as blood pressure and heart rates tend to be lower then, and ensure you’re well-rested the night before. If you’re feeling unwell on the day of the exam, rescheduling is advisable. Additionally, fasting for at least eight hours prior to the exam can help ensure accurate readings of glucose and cholesterol levels.
Before finalizing your policy, seek guidance from an FRC® trained advisor, who can recommend insurers likely to offer coverage at reasonable rates.
