When you have decided to purchase a protecting product it is important to note what various terminologies mean, choosing to remain ignorant could potentially cost you a pretty packet when it comes to the pricing of your policy. Life insurance and all of its protecting features come with a number of excluding factors and exceptions to the 'general' rule. Finding out whether an extra premium has been added because you have been declared 'sub-prime' is essential so that; on the one hand you do not feel you are being over charged or swindled by the company and on the other hand you are comparing policies on an equal footing.

Rated premiums

If you find the premium you are paying for your life insurance policy is somewhat steep you may be paying an extra premium to cover your 'rated' status. If your premium has been rated it means that the insurance company have provided the policy for you on the basis that you pay an extra amount to accommodate for the extra risks associated with your person. This can come about because you smoke or drink above their weekly allowance for someone of your age and sex, or because you work in a particular industry. In short it is because following your application it was deemed that you were above the average risk and in order to accommodate for this the company needs to charge you extra; a 'balancing of the books' as such.

While it may be a frustration to you to discover that your risk levels are affecting the amount you pay for the benefits of life insurance coverage, the fact that you are still 'insurable' is a blessing. If you had an elevated risk level because of something more extreme you may find that companies refuse to insure you all together. With that in mind it may not be the wisest move to 'jump ship' simply because you are facing a 'rated' version of a policy. One underwriter's 'moderate risk' may be another one's 'extreme', potentially leaving you in a position that if you jump from one ship you may not have another one to receive you.

Which quote is mine?

In the era of modern technology the majority of information is exchanged in a virtual fashion. Most people source their information from websites, for some it is directly from the product provider, however many are making exhaustive use of the ever popular comparison website. Using the comparison site allows you the ability to search multiple offerings from various providers simultaneously, however the majority of these 'one size fits all' products do not provide the best fit. It is for this reason that you may still need to contact a provider to give additional information if any 'risk areas' are flagged.

It is important that people aren't scared of being "rated", or worried when a comparison site informs them they need to contact a provider directly as more information is required. Recent studies have shown that only about 12 per cent of people applying for life insurance find that their case has been "rated" and thus they will have to pay a higher premium. That leaves a huge portion (88 per cent) of customers finding that because they are of average health have few risks associated with them and thus are in a position to make a saving on their life insurance policy considering the plummeting prices within the sector.



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