There are many different factors that can affect how much you pay for life insurance. However, there are some factors that may be weighed heavier than others. Check out this list below to see the factors that are most important to life insurers when giving someone a life insurance policy rate.
This is one of the most important factors that will affect your rate. Simply put, the younger you are the lower your rate will be. The reason being is that the younger you are the less likely you are to pass away. As a result, many life insurers recommend buying a policy when you are younger.
Certain more risky and dangerous occupations, such as race car drivers and construction workers, may result in an increased rate or even a denial of coverage because they carry a huge risk of accidental death.
Your current health
Typically, you must go through a medical exam when trying to get life insurance. They will check out things such as high blood pressure or anything else that may be an indicator of future health problems. Those who are in better health will usually receive lower rates.
Your health history
Your health is another big factor in deciding your rate. If you have a history of chronic illnesses or any other health problems you are more likely to have a higher rate.
Your family history
Many people who have a family history of serious illnesses, specifically those that can be hereditary, are more likely to pay more.
Nowadays, everyone knows that smoking is an unhealthy habit to be in. It can cause many illnesses such as lung cancer. As a result, those who smoke usually pay more for life insurance just because of the inherent health risks of the habit. Nevertheless, if you quit you may be able to lower your rates within a year.
As with smoking, drinking heavily can take a toll on your health. During your health screening you will be asked about your drinking habits. If you are a heavy and habitual drinker you will most likely pay more for your life insurance.
Generally, women live longer than men so they may pay less for insurance.