The “Universal Life Variable” contract combines the flexibility of both Universal Life and Variable Life. It allows you to control your investments, the premiums are flexible, the amount of the final death benefit, and the surrender value depends on the performance of the investments. The “cash value” is therefore not remunerated at a rate, but according to the investment choices in the financial markets. You, therefore, have control over your investments and remuneration.
How much does life insurance cost in the USA?
Insurance rates in the United States
Insurance rates (Photo credit: John Hughes – Freeimages.com)
Life insurance underwriting is based on many criteria related to life expectancies such as age, gender, nicotine use, medical or family health history (heart disease or cancer), dangerous hobbies practiced (scuba diving, planned trips to high-risk areas), and even driving record or credit history!
This information is verified by the companies by having clients fill out a very complete questionnaire and/or by obtaining their medical records from doctors, by having medical tests (blood, urine, electrocardiogram), by consulting the list of current (or previous) medications using prescription databases, etc…
The most important factors that influence price are age, gender, and pre-existing medical conditions. Seniors will pay more, as will men. Heart problems, high blood pressure, mental illness, or a family history of heart disease or cancer will increase insurance premiums. Insurers also charge higher rates to people who take part in “dangerous” hobbies, and smokers can expect to pay twice as much as non-smokers.
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