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Factors That Affect Your Life Insurance Quote

Finding the right life insurance for your age group can be a challenge. There’s a lot to consider including how much coverage you’ll need, what type of policy is best for your situation, and more.

One thing we’d like to stress is that you’ll need to be completely honest when filling out the insurance application. Providing falsified information is a criminal offence, and your policy could be cancelled or invalidated by the insurer, as a result.

If you’re on the market for life insurance, you’ll need to consider several factors that can affect the insurance quotes from various insurance providers. Let’s take a look at some of the factors that can determine the cost of your premium.

1). Age

Age is one of the most important factors when it comes to a life insurance policy. For instance, the younger you are, the lower the premium will be. The older you are, the higher the monthly premium for the policy.

What does age make a difference in the policy rates? When you’re young, chances are that you’re in good health. For this reason, you pose a lower risk to the insurance company. On the other hand, as you become older, the risk of dying from disease, etc. increases, which poses a higher risk that the insurer will have to pay out.

Buying a life insurance policy when you’re younger will mean better rates on the premium.

2). Gender

Insurance rates are generally higher for men than for women. This is because men generally are a higher insurance risk than women. Men tend to have shorter life expectancy compared to women.

As a result, if you’re a man, your premium will be higher, while if you’re a woman, your rates will be lower.

3). Smoking

If you’re a smoker, expect to pay more for your life insurance. The reason is that smoking has been proven to harm your health by causing a range of life-threatening conditions. Insurance providers will see you as a greater risk, which will lead to a higher life insurance premium.

However, if you quit smoking for 12 months before applying for a policy, then insurance companies will no longer see you as a smoker. Quitting the smoking habit not only improves your health, but also lowers the premium you’ll pay on a life insurance policy.

4). Health

Insurance providers like to insure healthy people; if you have pre-existing health conditions, this could raise your premium.

Insurers look for information on your height and weight. They’ll also inquire about medications you’re taking or if you’ve received treatment for specific conditions such as high cholesterol, high blood pressure, etc. You may also be asked if you consume alcohol; if so, then they’ll want to know how much you drink. The insurance company will also ask if you’ve abused substances in the past.

All of these factors will be used to determine the amount of risk you pose for the insurance provider. The more health issues you have, the higher your life insurance premium will be. On the other hand, if you’re very healthy, then your premium will be lower.

5). Family Medical History

Not only does your own medical history determine the cost of life insurance premiums, but so does your family medical history. This is because some medical conditions are genetic, meaning they can be inherited. For instance, the insurance provider may ask if your family has a history of heart disease, cancer and other conditions.

You’ll need to know the history of your immediate family, which includes mother, father, siblings, and possibly grandparents. The more genetically related health issues that run in your family, the higher a life insurance premium will run.

6). Driving History, Criminal Offences & Hobbies

Expect insurers to ask about your driving history and your hobbies. Here, they’re looking for information on whether or not you’re a dangerous driver. They’ll want to know of past traffic issues such as tickets, accidents, drunk driving charges, etc.

If you have a criminal history, this too will be factored into the price of a life insurance policy.

In addition to your driving history, the insurance provider will also want to know if you have dangerous hobbies such as sky diving, car racing, mountain climbing, etc.

The riskier your driving habits and hobbies are, expect to pay more for a life insurance policy. Also expect to pay more if you have a criminal record. The reason is that insurers will see you as a higher risk with these types of activities in your past.

7). Occupation

Insurers will ask what you do for work. Here, they’re looking to see if your occupation is dangerous and risky. Occupations such as police officers, ocean fisherman, firefighters, etc. are generally considered high-risk jobs. You can expect to pay more for life insurance if you have a risky job.

On the other hand, if you have a relatively safe job, such as sitting in an office most of the day, chances are your premiums will be lower.

8). Other Factors

  • Here’s a quick list of other factors that could be used by insurers to determine the amount of risk you pose:
  • Foreign travel
  • Risk classification: they may look to see how other insurance companies have categorized you as a risk
  • Length of policy term
  • Life insurance policy amount: the higher the coverage amount, the higher the premium will be
  • Policy extras

When it comes to shopping for the right policy at the right price, it pays to comparison shop to find the best policy for your needs and life situation. During the research phase, you can use an online insurance comparison site to receive quotes from several insurance providers.

Once you have several quotes, then it’s time to contact the individual insurance companies and ask for further details on the policies they offer. It pays to shop around to find the best price on a life insurance policy that will be a good fit for you and your lifestyle.

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