Nervous about your potential premium?
We understand the fear of unchartered territory. While the calculations of life insurers can seem mysterious, there are definite factors that influence your rate, both positively and negatively.
What to Know About Life Insurance Premiums
A premium is the amount you’ll have to pay for your life insurance policy. Typically, insurance companies determine your premium through an underwriting process. They’ll consider a number of factors and calculate the overall risk you may pose to the company having to pay out a claim during the life of your policy.
Overall health is, naturally, a major factor, but there are others. Continue reading for the 8 factors that may affect your rate.
1. Your Age
The younger you are when purchasing life insurance, the lower your rate will be. While unfortunate, it’s just a fact that it’s easier to purchase a life insurance policy at 35 than it is at 65.
2. Your Gender
Statistics show that women live an average of five years longer than men. Insurers will price their premiums accordingly (all things being equal, women will have a lower premium than men).
3. Your Overall Health
Health is certainly a component in your insurer’s considerations. So, if you have decent cholesterol and blood pressure levels, you have a better chance of scoring a low rate. If you eat fast food regularly and lead a sedentary lifestyle, you may have to pay more.
4. Your Family Medical History
We understand that many health issues are genetic, and unfortunately, life insurers will consider factors like a history of cancer or heart disease in the family or other passed-down medical conditions. It’s important to exercise, eat well, and keep these issues in check!
5. Your Smoking and Drinking Habits
Are you a pack-a-day smoker? Life insurers won’t look kindly on it. The fact is, if you’re a heavy drinker or smoker, you’re likely to pay a higher premium.
6. Your Occupation
High risk professions can also affect your life insurance premium. For example, a skydiving instructor will probably pay more per month than an accountant.
7. Lifestyle and Hobbies
Likewise, if you love ski jumping or cliff diving, you’ll see higher rates. Knitters and painters are in the clear. You may also need to answer questions about your lifestyle, such as travel habits. It may seem intrusive, but life insurers want to get a complete picture of your health, hobbies, and risks.
8. The Payment Mode You Choose
Finally, you may see lower rates if you pay annually rather than month-by-month.
Contact Low Cost Life Insurance for Up-to-Date Information
As you can see, keeping yourself healthy doesn’t just prolong your life, it also earns you a better life insurance premium.
If you have concerns about your rate, or further questions about the underwriting process, don’t hesitate to contact us! Our experts can give you the information you need to make the best choice for you and your family.
