Price - Important Factors That Affect Your Life Insurance Premiums


These important factors listed below affect the price your life insurance quotes / premiums:

  • Age
    If all other factors are equal, the younger you are the lower your premium will be.

  • Gender
    Woman tend to live longer than men as a general rule, thus women generally get a lower rate for life insurance than men. (Again if all other factors are equal)


  • Current Health
    Depending on the type of life insurance you are buying, you will generally have to go through a medical exam. The insurance underwriters will search for things that may possibly make you a higher risk. (Examples could be: High blood pressure, high cholesterol, or other health concerns that might be a sign of future problems.) People who are currently in good health will generally have lower rates. (Again depending on the policy type.)

  • Health History
    If you have a history of chronic disease or other potential health problems that makes you a higher risk for the insurance company, that may result in higher rates also.

  • Family Health History
    If your family members have a major history of serious illnesses such as heart disease and cancer, which can be hereditary, you may end up paying more for life insurance as well.

  • Weight
    If you are overweight based on a height to weight ratio scale, you generally will pay more for life insurance. Being overweight is known to come with potential health problems that could result in earlier death, which means a higher risk for the insurance company.

  • Smoking
    Smokers pay more for life insurance because of the increased risk of earlier death. However, if they quit smoking, they may qualify for lower rates within a year.

  • Alcohol Consumption
    Heavy alcohol consumption can also have a major adverse effect on your health. Those who drink heavily are likely to pay more for their insurance rates.

  • Occupation
    It’s pretty clear that some trades and professions are more risky than others. For example, if you are a tower climber or race car driver, you will certainly pay more than an office worker since insurance companies have good reason to see your job more risky than the average office worker. Certain dangerous occupations may result in an increase in rates or even denial of coverage because they carry such a heavy risk of accidental death.

  • Policy Type and/or Length
    The type of life insurance policy can effect the price of your premiums.
    Examples:
    "Whole Life Insurance" and "Universal Life Insurance” (which are considered permanent life insurance policies and are generally the most expensive) can last your entire life and also can have cash accumulation built into the policy, thus increasing your premiums.
    Whereas "Term Life Insurance" (also known as temporary life insurance since it is set for a predetermined number of years, such as 10 years, 20 years, etc.) can strictly be purchased for the death benefit without any cash accumulation. Term Life Insurance is generally considered the least expensive type of Life Insurance since it is not guaranteed to last your entire life time. The term policy is designed only to last the predetermined number of years agreed upon and listed in the policy. Depending on the number of years listed in your term policy, you may possibly outlive that guaranteed term and thus not have any coverage when you pass away. (Unless you convert the policy or buy more life insurance.)

  • Death Benefit Amount
    Lastly and it kind of goest without saying, but the more death benefit amount you request, the higher the premium will be!

  • Choose an Independent Agent
    Choosing an independent agent allows your agent to shop a large number of insurance companies for the best rate regarding your specific circumstances, rather than working with captive agents that may be just allowed to use one insurance company or their affiliates. Rates can vary a lot from one insurance company to another insurance company for the exact same coverage for a person with the same circumstances. So it is prudent to let your independent agent find which insurance company best suites your needs and budget. Since you may be able to get the exact same amount of coverage and term length through a highly rated insurance company at a less expensive premium. 


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Note: Life Insurance information can be confusing to many people. As an "independent licensed agent" I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose a life insurance policy, from many choices of different insurance companies, that you feel fits your needs. Plus if you choose to work with me you will have personalized service by a local agent that can shop premium quotes for you. If you would like my assistance to discuss and/or start the process of getting you insured please call me at 941-404-5334. 


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Why Choose Independent Agents?