Answers...
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1. Underwriting is the process of determining the financial risk associated
with issuing a policy.
For life insurance, this means determining which of several predefined
categories fit your profile.
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2. Smoking is the most important factor, doubling or even tripling your
premiums. All insurance companies have separate categories for smokers.
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3. Most actuaries consider these to be the most important factors after smoking:
cholesterol, blood pressure, build (height and weight), family history of cancer
or heart disease, and driving record.
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4. The reason may not be health related. Ask your agent if it is due to your
driving record, hazardous occupation or hobbies, plans for foreign travel, or some
other reason.
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5. Cholesterol ratio is considered by most companies to be as important as
total cholesterol. Cholesterol ratio is the ratio of total cholesterol to cholesterol
bound to high density lipoproteins (HDL or "good" cholesterol). Perhaps
you don't have enough HDL, which is required for important body functions.
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6. In our study, the average increase due to poor underwriting factors was
anywhere from $129 to $626 per year.
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7. No, there is wide variation in the treatment from one company to the next.
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8. In our study, our sample person, with
a total cholesterol of 285 mg/dl, would have paid $730 with one company and
$1,315 with another.
This is why it is so important to choose the right company with which to apply for
life insurance.
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