Most financial advisors consider life insurance and the financial protection it provides worth it.
Many adults should have basic life insurance and some should have one. But it’s worth noting that not all life insurance policies are created equal – and some may cost more than others, depending on your personal circumstances.
If you don’t currently have a life insurance policy, or want to increase the coverage you already have, you can easily get started now by getting a quote. This is a great first step in determining what you have to pay.
As you begin the application process, it helps to fully understand the factors that affect costs.
5 Factors That Affect Life Insurance Rates
If you’re a working adult, spouse or parent, you’ll probably benefit from something. While millions of Americans will benefit from life insurance, that doesn’t mean they will have the same experience or pay the same price. Because the cost of life insurance varies from person to person and it depends on one For example:
- Age: This is an obvious one but should not be overlooked, even if you are old and healthy. A younger applicant is less likely to have health problems than an older one. Thus, younger policyholders are a less risky bet, although both groups are equally healthy. Accordingly, the younger you are, the less you will have to pay. Rates increase as you age.
- Health: If you are sick, have current medical or pre-existing problems, you can pay more for life insurance than if you are fit without any problems. This is especially true for smokers because the health problems they are prone to are well known, making them problematic to insure at a reasonable cost.
- Gender: Paying more for one gender may seem unfair but statistically, Women live longer than men. Because men often (but not always) die younger than women, they can expect to pay more for their life insurance coverage.
- Policy Types: Not all policies are created equal. some offer . Some don’t. Some insure you for a selected time frame while others cover you for life. Different policies have different costs. understand the difference between . The type you choose (and qualify for) will affect your rate.
- Family medical history: Your genetics play a role when getting life insurance. A history of cancer, heart disease or diabetes can be an indicator of your own health. If you have a family history of major health problems, this can be a determining factor in what you pay for life insurance.
Not sure how these factors may affect what rate you qualify for? You can easily view rates from multiple sources right now to see what you’ll pay
Other life insurance rate considerations
The above five factors are some of the most important when trying to determine how much you will pay for life insurance, but they are not the only considerations a company will account for. Things like your occupation, driving record and personal lifestyle can also come into play. Anything considered risky will likely lead to higher rates.
Conversely, if these factors are insignificant, don’t expect them to have a material impact on costs.
As mentioned above, life insurance is something that many adults should have, but the costs they pay for it will vary significantly. Know what to expect before applying. Talk to a life insurance professional today and get a free price estimate.