Life insurance policies are always based on the health, age, and demographics of an individual candidate. But it also has to be noted that life insurance premiums can change -- when the health of the person insured changes significantly. Here are some things you need to know about how your relative health impacts your life insurance premiums.
Getting an Initial Evaluation
When you first sign up for a life insurance policy, you'll often be given an initial health evaluation. It's this health evaluation that will tell the life insurance company everything they need to know about your health and the policy that they should set up for you. But initial health evaluations are usually done for whole life insurance policies and larger term life insurance policies; they usually aren't done for smaller policies, such as those that are just a few thousand dollars.
Factors That Can Decrease Your Health
When your health decreases, it can increase your life insurance policies. The most common types of health decrease involve taking up smoking or other habits that could potentially lead to an earlier passing. But in general, most life insurance policies aren't going to require that you do standard testing. Instead, they will go off your initial evaluation, adjusted based on your demographics and your age.
Reporting Increases In Your Health
Sometimes you can actually have an increase in your health that could improve your life insurance premiums. As an example, a disease that you are struggling with could have gone into remission, or you may have recovered from a serious illness. Reporting an increase in your health may not immediately improve your life insurance premiums, but it can impact the premiums of the next term.
Life insurance doesn't have guaranteed issue the way that health insurance does. Once your term insurance expires, it is very possible that you could be refused other insurance policies. What do you do? At this point, most people will stack smaller insurance policies, which can get expensive. A life insurance broker may be able to help with securing a better insurance policy, but it will rely upon your age and current health.
A life insurance increase isn't always a permanent situation. You can always try to negotiate with other life insurance providers. But you can expect your life insurance options to change significantly if your health changes, and a life insurance broker may be the best option.