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[VIDEO] Your Life Insurance Rate Class

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By Byron Udell | August 12, 2018

When applying for life insurance coverage, providers want to know more about your lifestyle. This helps providers determine what rate class is the best fit.  So,  providers will ask lots of questions like about you and your lifestyle. While this isn’t an exhaustive list, it does give you an idea of what they want to know:

  • Do you smoke? If you quit, when did you last smoke?
  • How often do you exercise?
  • What is your Body Mass Index (BMI)?
  • Do you partake in risky behavior like cliff jumping or SCUBA diving?

While these questions may seem invasive, the insurance providers need to know what they’re getting into when they insure you. Sit back for about 2 minutes and learn about how rate class will impact your life insurance premiums.

Nifty Life Insurance Calculator

Our Life Insurance Calculator can help you get a rough idea of how much coverage you’ll need to make sure your family is okay financially when you die.

  • Annual income before tax: $

    Annual income is an important factor in determining your needs, but it’s not the only one. When you die, your life insurance is like your final paycheck.

  • % of income needed by dependents:  %

    Because you’ll be gone, presumably they won’t need as much as you’re currently earning.  Typically, 80% of your current income is a good place to start.

  • Your Age: years

    The younger you are, the more years of your income your family stands to lose when you die.

  • Number of years benefits are needed:  

    If you died tomorrow, how many years of income do you want to provide for your family?

  • Annual inflation rate (estimate):  %

    Because of inflation, in order to maintain your family’s current standard of living, you’ll need to plan for increases in their annual income to keep pace.  Historically, inflation has averaged between 2% and 4%.

  • Annual interest rate (estimate):  %

    This is an assumption as to how much you believe your spouse will be able to earn on the death benefit proceeds. We have found that most surviving spouses are usually very conservative in how they invest the death benefit. The most common thing we see is that the money gets deposited into a bank account. You know your spouse better than anyone. Pick a number that you feel your spouse will be able to comfortably earn on the proceeds.

  • Based on the information you provided, you need about

    of life insurance to replace your income for the next years.

Good for you! You’ve taken the first step in keeping your family safe. So what’s next? Call us at 800-442-9899 today and we’ll help you find the policy that fits your life.

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