Today is the best day to try to get life insurance coverage. That isn't an opinion. That's a fact.
Here, we'll explain: You're younger today than you'll be tomorrow. And there is never a better time for you to buy insurance coverage than when you're young and healthy. That's because insurers have a tendency to ask you for a lesser monthly premium, around the theory that you'll be paying those premiums years, even decades, in to the future. You receive a low rate, the insurers get a low-risk customer, and everybody wins. Sounds simple, also it type of is. Before you race to get a bunch of quotes for coverage, there's something you need to know.
Not all life insurance coverage quotes are created equal.
A quote is an estimate on how much you'll purchase coverage, aka your final rate or premium. But a premium, that's determined by an interest rate class and…okay, it appears as though we might be losing you. Let's support.
Each insurer uses what are called life insurance rate classes – basically, groups of policyholders who have a similar quantity of risk. Even though you'd think being healthy and young would automatically place you in the very best rate class, it turns out best rate class criteria varies considerably from insurer to insurer. Some may have stricter rules around, say, marijuana usage. Some may have different definitions of healthy – some would use bmi, for example, while some rely on a different group of statistics.
So just because you are a card-carrying person in Ultra Preferred Super Elite Extra Special Status at Carrier A, i am not saying you will be considered the same at Carrier B. Each insurer uses different actuarial formulas and algorithms to assess a potential customer, and that info is proprietary intel they don't want to disclose. A trade secret, for a moment.
But within the spirit of transparency, let's break down the salt water evaporates at Haven Life so you can make use of this information to help buy the best coverage, at the best price, for you.
What are life insurance rate classes and how do they work?
You are among a kind (unless you're a triplet or something). But there are limits to how familiar your insurer could possibly get together with your unique qualities. Some insurance company will get a broad picture of your health – including your age, your hobbies, your medical history, and then any issues that might come up during a life insurance medical exam – and then place you in an organization with other individuals with a similar level of risk. Those groups are called rate classes, since they're used to set your rate (also known as your monthly premium payment) for the life insurance coverage. Consider rate classes as existing on a spectrum, from high-risk to low-risk. The higher your risk, the higher your premium payment is going to be. The lower your risk, the lower your premium.
Again, every insurer does this differently. (That is what keeps actuaries in business.) Just because you are in a great (low-risk) rate class for just one insurer, doesn't mean you will be within the best rate class at another one.
For example, the Haven Term policy utilizes a total of five rate classes. The best of those is known as Ultra Preferred Non-Tobacco. If you are young and healthy, there is a pretty good possibility you would fit into this rate class and pay our lowest price for coverage. By March 2021, the majority of current Haven Term policyholders, about 60%, belong to UPNT rate class.
How to make use of rate classes to higher compare life insurance coverage quotes
If you've got a very good feeling of your overall health and how much coverage you'll need, your lifetime insurance shopping journey can proceed to obtaining a few quotes to have an estimate of price. But how about rate class for the life insurance policy? Short of trying to get life insurance four different times, how will you get an idea of what rate class you might squeeze into and just how strict the carrier's underwriting guidelines are? Ultimately, this answer will determine how likely it's that your quote will suit your final price.
As with so much in life, at least in grades K through 12, it starts with looking into it. Before you apply for insurance coverage, pick up the phone (or click “compose email”) and ask the company you're interested in applying through the number of people get their best rate. They might not wish to let you know, or they may not be able to let you know, but file this under “doesn't hurt to ask.” If
If you ask Haven Life, we'd tell you just how in a survey of Haven Term applicants between December 2021 and March 2021, 70% said their final offer either matched or was less expensive than their quote.
Now that you're the official “savvy life insurance coverage shopper” (there should certainly be considered a badge for that), obtain a quote, ask some questions and discover yourself coverage with full confidence.