What Affects Life Insurance Rates?
Life insurance is one of the types of insurance you should have in place right now as you read this. Your age, gender and current health status are irrelevant when it comes to life insurance. Tomorrow is a day that isn’t promised to any of us. It is important that you’re always well-prepared for those unexpected events in life. With a life insurance policy in place you can have greater comfort and peace of mind knowing that your loved ones will be taken care of in the event of the unthinkable.
If you are in the market to purchase a life insurance policy it is important to compare coverage and costs with several different companies before selecting your policy. Not all life insurance companies are created the same, and you do not want to work with a company that isn’t going to go above and beyond to meet your expectations.
There are a number of factors that influence the cost of your life insurance policy. These factors make it even more important to compare before selecting your provider. Factors used to help determine the costs of your life insurance policy include:
Do you Smoke? Yes, the insurance company will ask this question and if you answer with a yes, expect the amount of money you’ll fork over for your premiums to be a great deal more than the costs of coverage for those who are non-smokers.
Health. Along with smoking, insurance companies will look at your overall health condition to determine what your rates should be. Of course if you are in good health you are going to pay less than someone who has a chronic health problem or other concerns.
Age & Gender. Your age and gender affect the cost of your policy more than any other factors. The younger that you are when you start your policy, the lower the cost that you will pay. Women are also given better rates than men, since their life expectancy is greater.
Life Insurance Company. As mentioned above, not all life insurance companies are created equally. Do not settle for less than what you deserve. Never assume that the higher the cost of the policy the better the coverage. Get to know the life insurance company a little better, then decide who is worth your hard-earned money and trust.
These are only some of the factors affecting the cost of your life insurance policy. Keep them in mind when you are shopping and there is no doubt you’ll get the best rate around.