Six Life Insurance Questions and Answers
July 7th, 2010 | 
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1. How does a life insurance company decide how much a particular policy costs?
The price of a life insurance policy is a life insurance company’s calculation of the amount of cash necessary to gather from each member of the life insurance pool. The price is always dependent on the mortality tables and the calculation of the size of the risk the life insurance company is taking on by being the insurer of your life insurance policy.
2. How does a life insurance company assess their risk in insuring an individual?
When somebody applies for a life insurance policy, the company will inquire about their health status and often require a medical exam. The life insurance company will use information gathered to determine if and how they want to insure the individual.
This determination of “if” and “how” is referred to as “underwriting.” There are not many limits on the type of information underwriters can take into consideration.
3. Do all life insurance companies require a medical examination?
Often companies will require a physical medical examination prior to agreeing to insure an individual. Generally, they have a company doctor that will conduct this examination. This doctor or medical technician may have their own office or may even come to the potential insured party’s home for their convenience. The insurance company should not charge the potential insured party for this exam.
4. What types of questions will the life insurance company ask when applying for a policy?
It is common for life insurance applications to ask the following questions:
Do you regularly use tobacco or tobacco products? Life insurance companies strongly believe that smoking or using tobacco products in any form can make an individual’s life shorter and will charge higher premiums for smokers.
Do you have AIDS, cancer, heart disease, or are you HIV+? Depending on the severity of any health conditions such as these, a life insurance company may sell you a policy at the normal rate or possibly charge you a more expensive price. If the health problem is extremely severe, most life insurance companies will directly reject your application.
Do you have a hazardous career? With more dangerous jobs, companies tend to charge a more expensive price for a life insurance policy. If your job requires an above average amount of risky, life threatening behavior, expect a higher cost for life insurance.
Does your immediate family have a history of fatal diseases or death at a young age not due to an accident? The life insurance company is not barred from questioning you about you and your family’s health history. Diseases that commonly run in the family that are fatal, such as heart disease, Sickle Cell Anemia, or cancer may cause a company to reject your application or charge you a higher rate.
5. What other questions can I expect to be asked?
A life insurance application may ask seemingly unrelated health questions to asses high risk behavior.
Some of these questions may include the following:
In the past seven to ten years have you ever been arrested for driving under the influence? Diagnosed or medically treated for cancer, AIDS, HIV, chronic lung disorder, heart disease, diabetes, stroke, or liver problems? Recommended by a medical professional to cease or reduce drinking alcohol?
Are you currently or have you ever been disabled or forced to retire due to an illness or injury?
Answering “yes” to any one of these inquiries may result in getting a life insurance application denied, it is far better than answering dishonestly and then having a claim refused later down the line. This outcome could result in your beneficiaries getting nothing if you should die.
6. Can life insurance companies use genetic testing to determine whether or not they want to insure someone?
Life insurance companies often use genetic testing to learn as much as possible about their potential clients. By administering a blood test, companies can determine not only what diseases you may currently have, but ones you may get in the future as well. Some states do not permit this kind of testing for health insurance purposes, but generally for life insurance, genetic testing is permitted.
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What is the best health insurance and life insurance policies?What is the best health insurance and life insurance policies? I am recently out of the military and need to purchase an individual health ins policy. However, I am not sure which ones are the best. I am a student, do they offer any good student policies? Also, is the SGLI to VGLI conversion a good change to make? If not, which is better term or whole life insurance policies?
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Tags: 101, agent, flash, foundation, happens, insurance, life, Life Insurance, Life Insurance Companies, Life Insurance Policy, medical examiniation
The rooster did it, fearing for the turkeys life, by carrying rat poison to the cow. the cows milk was poison.
Mrs Brown found the body at 11.05, time of death 10:45, 15 mins after being given by wife who saw half of fox
I don't know that it helps or not, but in my area lots of Muslims have life insurance. It isn't anything like gambling or interest, it is a service you pay for to ensure that you family gets some money (the money you put into it) upon you death. If nothing else it covers funeral expenses. My grandma in law said her sheik said it is ok, because of the above. My uncle in law however is one of the ones that think everything is haram, yet he's quick to whip out the credit card. I do however think that you should tell them, even if you say it is included, that way before you complete the policy they can say if they think it is or not. I do not see how life insurance is haram, but health, auto, home, are all ok. You are not gambling with your life any more than having the others, it is a form of protection. Russian roulette, now that's gambling with your life, not life insurance.
God Bless
@MegaJohnShaft read what ???
@probslpwtyormama-go read it yourself. Its a simple concept. Good luck.
And another person steps in to admit they dont know what their talking about. First step to correct a problem is to admit you have one..any way. If you are a person trying to decide on Life Ins and reading all this, you are probably confused. I can only hope you have noticed how closed minded term agents are. Not to mention rude and disrespectful.
Just hope and pray she'll cool off she might be happy so all you can do is be happy for her for now if she does come back tell your parents not to be as harsh as before and just leave her choices to her all you can do is prevent her mistake and pray about it
a real sister wouldve ran up to you and hugged you shes obviously ignorant and in my humble opinion you should find someone else to give your everyday caring to
So here is some advice: #1 Dont trust anyone that only pushes one type of insurance, one size DOES NOT FIT ALL #2- stay away from anyone that tries to tell you what you need or should do without knowing your exact goal and situation first. That kind of person is only after a commission and doesnt care about you
Well, Palo Alto has an extremely expensive market. A standard 3 bedroom, 2 bath, 1300 sqt home in a decent neighborhood in Palo Alto can range anywhere between 850k to 1.2 mil.
http://www.coldwellbanker.com/servlet/Se…
Even the tiniest least desirable homes are in the neighborhood of 900k -1 mil. This house listing is a prime example. http://www.coldwellbanker.com/servlet/Pr…
I don't have any background in really estate (so you should probably not take my advice too seriously) but assuming you decide to purchase a decent 900k home — Let's say you put a down payment of around 180k and get a standard 30 year fixed mortgage with a 6% interest. You would need to make monthly payments of about $,4,400 a month – Which is about $53,000 per year. Most 3 bedroom rental units in the Stanford-greater bay area are in the $2,750-$3,500 range -as per craigslist. The average house room rental for single family homes in Palo Alto is around $650…so you would have to get at least 7 roommates to get a profit if your monthly mortgage fixed at $4,400. So, you could potentially end up with a pretty hefty monthly difference even after you rent out all of the rooms…which could then lead down the road of miss payments and eventually foreclosure.
As far as acquiring a loan is concerned, the most important criterion that most lenders look for is usually the ability for you to make the payments. …So net worth, stable income, credit history, FICO scores, and employment record. They would probably also require a minimum employment status from a single employer for a give time range (let's assume 3-4 years) —just to give validity to the borrower's claim of repayment. I don't know if acting/modeling would be considered a stable income…just because the industry is almost exclusively based on vanity…I'm not saying that you will break a leg or something and not be able model or act but even the modeling industry has trends. For instance, the early 2000s-present time have been very good from African models and models with very distinct ethnic-racially ambiguous features (Alek Wek, Liya Kabeda) …they could easily be old news several years from now…and East Asian models might be the next new thing…or women with square jaws..or some other "different" feature…and they might also put into account your status as a full time student and how that would play a role is your ability to pay your mortgage.
I think that you should definitely invest your money when you go off to college but real estate is a VERY serious investment. It would probably not be wise to invest 800k or so of your savings at such a young age. I personally wouldn't invest more than 5k. College is a GREAT place to exercise your entrepreneurship skills and there are MANY business endeavors that you could get it.
Eg.
You could invest in a screen printing machine and design/print shirts for college clubs/interest groups/frats/sororities/events. College organizations LOVE shirts and you could make a TON of money printing shirts.
You could tie some of your passions with your investments. For instance, you could partner with a non profit in Mexico or Cali and sell your own bottled water in the campus (It's actually not hard to find a natural spring and a company that can purify the water and bottle it —-lol, with your own logo –a portion of the profits could go to your favorite charity and most college aged kids would not mind supporting such a cause-biz).
You could start a college-high school tutoring biz. My sister gathered a few friends and recently started a h.s tutoring biz for h.s kids in NYC. Parents are MORE than willing to pay college kids (especially those who attend high ranking schools) to tutor their kids. My sister pays her friend a fixed wage ($6/hr) to tutor h.s kids (Algebra, SATs, Chemistry, Biology, general college prep e.t.c) –the parents/kids pay her $18/hour so my sister actually ends up making a VERY nice profit. The more friends/college students she recruits to tutor her clients — the more money she makes.
The point is, there are MANY innovative ways to invest-make money in college. Real estate (even now) is not always the best investment….and chances are, it would be very difficult for you to get a loan so keep your eyes open for any business opportunities that come your way.
@dkfrsh way to explain bullshit cash value agents.
I would advise against sending an email to that email address provided. That answer is so poorly written, why would anyone take them seriously. Report the email perhaps – it might not adhere to Yahoo Community guidelines – and that answer is bogus.
But, what is it you were desiring to learn about the financial aid process? I would be happy to try and help out with your questions.
we stole nothing, we payed for the land we got and still paying. i posted a question in the ireland section and it got deleted. i asked if people there liked obama. they thought he was hot or a babe. any way i was called a racist and reported to yahoo. i was even called names. i think we should stop immigration all together. let them people think about how much they hate us americans. after hearing what the irish felt for us made me sick and piisses me off. i'm still mad. we go and help people when they beg for our help. and we get hate in return. is it because we did something they couldn't do or what? right now i have no respect for foreigners. they should stay in te country that love them sooo much.
@dkfrsh do you now how you can tell a whole life agent is lying? they are posting !!
Have you not talked about marriage before this? I think you will have be married to receive any benefits from his job.
Many families go through this. I don't see why he will be gone THAT much once the child is older. He won't always be deployed. If you do plan to get married, you can live on base (or in a base town) and bond with other families in your position. Base communities are family and are wonderfully supportive of each other. I don't think its NOT worth bringing a baby into this world. That's YOUR baby…do you think you cannot handle raising a child?
Have you talked to him about the possibility of giving it up for adoption if you truly don't want to marry him or raise this child alone?
Hey there, I just wanted to tell you that I am one of the few people who had a panic attack every time she smoked cannibas. It made me physically paranoid. I only tried it a few times, and each time was miserable, so the stuff can make it happen to you, especially if you are prone to anxiety, which I was. I think your cannibas use brought your previously existing anxiety to the forefront. You also removed alcohol from your life, which was masking your anxiety (self-medicating) to an extent, so the anxiety symptoms are more obvious now. Try some deep breathing exercises for these symptoms. Slowly breathe in to the count of 7, hold, then slowly breathe out to the count of 7, hold, repeat many times, then just concentrate on your natural breathing and nothing else. Since you must wait 2.5 months to see a doctor, try to find some meditation tapes or CD's to play to learn relaxation techniques. Check the internet for relaxation techniques also. I know there are many to be found. Doctors can give you medication for anxiety, but you can take power over it by learning to deal with it. It's much better than needing a doctor's visit for more pills. It's empowering, and it's great not to feel those horrid symptoms anymore. I know because I've been there.
An excellent video to watch if you want to learn something is MISSED FORTUNE- DOUGLAS ANDREW: LOCK AND RESET vs THE MARKET Its 3:20 long and he does a fantastic job explaining the IUL. Its a very broad explanation because diff comp use diff indexes and credit you diff %. Everyone have a great Easter weekend!!!!!!!!!!!
These guys are great and note when this was taken – March of 2007 – way before the crash of ’08!!! How’s those buy term and invest accounts (which don’t exist) doing now?
@probslpwtyormama — the buy term invest the diff is what those policies do for you. The great thing is its all in one. AND TAX FREE. Im off to work now, I hope it was clear and people understand the difference.