How Life Insurance Premiums Are Calculated
How Your Life Insurance Premium is Determined
Obtaining a premium for life insurance is unlike any other purchase. The price is based on your specific health and risk assessment by the carrier's underwriting department.
Initially you will receive a quote, which is just a "guestimate". The objective for the customer is to get a "fair" quote, one that resembles some sense of reality.
Once you sign an application, the underwriting process begins.
The carrier will:
- Assess your medical exam for abnormal functions
- Examine the application for disclosed familial diseases, motor vehicle and Medical Information Bureau reports
- Occasionally, they will order medical reports, which could delay the underwriting process by 2-3 weeks.
After all the information gathering has been completed, the underwriter will "score" your risk and assign you a premium. The final premium may or may not be the same as your initial quoted price.
Each carrier has their own underwriting guidelines and they vary slightly. Unlike most other Internet services, QuickQuote operates a full case management department that works with the underwriters daily. We are your advocate in obtaining the lowest premium possible.
Term Life Insurance Quote Systems