Life insurance policies mean different things to different people. Not everyone requires the same level of financial security. Understanding your needs will help you find the right policy at the right price to protect both you and your family.
The following are a few important factors that can affect your insurance premiums.
Policy Type and Amount
There are different types of policies (whole, term, as well as variations of the two). The type of policy you choose will determine the amount you pay for your premiums. Term life is usually cheaper than whole life, and normally it’s much easier to get.
Age is a huge factor when it comes to insurance costs. The younger you are when you purchase your policy, the less you will pay in premiums. While you can purchase a policy at any age, the amount you pay will rise as you get older.
Your gender will also play a key role in how much you pay for your premiums. Women generally pay less in premiums because it is believed that they tend to take fewer risks and are more likely to live a healthier lifestyle.
Your general health will also influence how your insurance premiums are calculated. That is why “whole life policies” require a complete medical examination as part of the application process. The older you are, the more likely it is that you will have to submit to this type of medical exam.
Tobacco use and smoking will also influence your insurance premiums. Both will dramatically increase your risk of health problems. If you stop smoking and remain smoke-free for a specific period, you may be able to reduce your risk and lower your premiums.
Family Medical History
Your family medical history shows what your potential health risks may be as you grow older. Even if you do not have any health concerns when you apply for your life insurance policy, the risks you face in the future may influence the cost of your premiums.
Your job can also influence the cost of your life insurance premiums. Some jobs have a higher risk factor than others. For example, construction workers and police officers will face more potential threats than someone working from home or in an office.
Your driving record says a lot about the risks you may take in other areas of your life. A good driving record with no citations or accidents will improve your chances of earning a lower monthly premium. Keeping your car in good working order is also very important.
How often you pay your premiums will also be used to calculate their cost. Paying them every six months or yearly will be a lot cheaper than paying them monthly. Choosing to pay annually is very cost-effective if you have access to the amount of money you will need to cover the single payment.
If you want to learn more about life insurance and what affects your premiums, make sure to call the professionals. Our experts at Udell Family Insurance have the information you need and will help you find the best insurance policy for your needs. We will look at all of your risk factors and calculate what your premiums will cost. Contact us today to learn more.