Important Factors That May Affect Your Life Insurance Premium

Spectacles, lens with insurance premiums

It’s hard for many people to think about life insurance because it involves their own death. But at some point, if you’ve started a family, you need to think about the well-being of your loved ones in the event you become ill or die.

Here is a list of things that can affect your insurance premium.

  1. Policy Type and Amount

    The type of life insurance policy is the biggest factor that affects life insurance premiums. The amount of coverage impacts your premium as well. The two main types are term life and whole life, but there are also alternatives.

    Term life is the more affordable option, but it has fewer benefits and only lasts for the term of the policy, such as 10-20 years. Whole life, a.k.a permanent life, is more expensive but has more benefits because it provides cash withdrawal and lending options for the policyholder.

  2. Your Age

    Another important factor affecting insurance premiums is your age. The younger you are, the less you’ll probably pay in monthly life insurance premiums because the insurance agency is betting you’ll live many years.

  3. Your Gender

    Since women tend to live five years longer than men on average, life insurance premiums are lower for women than men. One of the reasons men don’t live as long as women are because they take more risks, such as dangerous jobs. Men get in more traffic accidents partly because men drive more.

  4. Your Health

    Your health is an indicator to a life insurance agency as to whether you are near death or many years from it. The better your health, the lower your life insurance premium. Adopting a healthy lifestyle with proper nutrition and exercise is key to maintaining excellent health.

  5. Tobacco and Smoking Usage

    Smoking cigarettes is a leading cause of lung cancer, which is still why cancer is a leading cause of death. Simply being a smoker makes an individual high risk to an insurance agency, which offers separate rates to smokers.

  6. Health History of Your Family

    If your family has a history of a certain disease, your life insurance premiums will likely be higher than for a person without clear health issues. Families with multiple health problems handed down through generations can still qualify for life insurance, but it may be expensive.

  7. Your Work Profession

    Your work profession has a profound effect on your health. Those who work in dangerous professions such as construction or mining usually pay much higher premiums than someone who works in an office. Insurance agencies are known to add fees for high-risk jobs.

  8. Your Hobbies

    Just like your profession, your hobbies help an insurance agency determine risks associated with your lifestyle. Scuba divers and rock climbers pay high life insurance premiums, while nutrition advisors are considered at lower risk.

  9. Your Driving History

    Not only does your driving record affect your auto insurance rates, but it also impacts life insurance premiums. If you have a clean driving record without violations or accidents, you’ll pay lower life insurance premiums. The more marks on your record, the more insurers view you as high risk.

  10. Payment Plan

    You don’t necessarily have to pay life insurance monthly. Some people pay annually or quarterly. Understanding the factors affecting insurance premiums will give you a clearer view of how life insurance works.

  11. Contact us at Udell Family Insurance for more information on deals related to life insurance. Our agents are always ready to help you answer your questions.

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Us contact us