What factors are affecting my life insurance premium?
While it’s a topic none of us want to broach that often, life insurance is one of the most important purchases we make for our family. That being said, you don’t want to be paying any more than you have to. We’ve taken a look at the main factors that are affecting your life insurance premium.
Age
This one probably goes without saying, but all other things being equal you can expect the younger you are, the lower your rate. Insurers generally encourage customers who are shopping around for policies to purchase them as soon as possible because the younger you are the cheaper the rate.
Gender
Interestingly, you can also expect your gender to have a bearing on the size of the premium you will be paying your insurer. As a general rule women tend to have longer life spans than men and as a result they can expect to pay lower rates for their life insurance when applying for a policy.
The type of policy you’re applying for
Expect the type of policy you’re applying for to also have a bearing on the amount of premium you’re paying to the insurer, as the risk of you passing away during the policy is higher if you’re covered for longer periods of time. It’s terrible to think about, but that’s the nature of the industry.
General lifestyle habits
The manner in which you’ve lived your life will also have a bearing on the amount of premium you can expect to pay to your insurer as part of your life insurance policy, including the following:
- Smoking – If you’re a smoker expect to pay an entirely different premium to non-smokers. Smoking increases your chances of contracting a number of diseases which can mean you end up paying almost double the cost of your non-smoking counterparts.
- Obesity – If you happen to be severely overweight you can expect that to affect your premiums. However if you happen to be carrying a couple of extra pounds exclusions generally won’t be triggered unless they’re couple with a few other ailments.
- Drinking – We all like to indulge in the occasional drink (or five), you can expect drinking to only effect your premium if it’s a serious situation. That being said if it is it’s not entirely uncommon to expect to pay much more or have your policy refused altogether.
- Hobbies – Sure, your weekly sky dive might keep you feeling young, but if you’re an adrenaline junky that’s definitely going to have an effect on your premium. Naturally, the more dangerous the activity, the more expensive your policy is going to end up being.
Finding the right life insurance policy for you
There’s no such thing as “one size fits all” in insurance and there are a lot of variables when it comes to a life insurance policy. When you are determining which coverage is right for you, make sure you do your research and shop around. Don’t be afraid to get a variety of quotes from different insurance companies and don’t let an agent talk you getting into more coverage than you need.
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