When starting your search for life insurance, finances are likely a concern. Purchasing a life insurance plan is essential to the financial protection of your loved ones, but you might be curious about the present monetary impact. As you might expect, there are many factors that underwriters and life insurance companies use to determine the cost of your life insurance premiums.
Age
Of course, you age is a significant factor of how much a company might charge for life insurance. Younger people are generally healthier and have a lower risk of death, so they often receive lower premiums. This might be all the more reason to buy life insurance when you are young.
Gender
In the United States, females have a longer life expectancy than males on average. This means that females are expected to pay for their life insurance for more years than their male peers. So, women are more likely to pay lower premiums.
Health History
When you purchase life insurance, some companies will require a medical exam to give to their underwriters. The better your health, the lower your premiums could be. the United States has the highest rate of chronic conditions, with about 87% of older Americans living with at least one. These illnesses certainly have an impact on health insurance cost. Your family history will also be taken into account, as your genes can put you at risk.
Lifestyle
High risk occupations in particular can put you in the running for higher insurance premiums. This means that truck drivers might have a higher premium than computer programmers. Underwriters might also take any high-risk hobbies into consideration.
Driving Record
Since car accidents cause a significant number of deaths, your insurance company will likely consider your driving history in your premium calculations. The fewer accidents you have on your record, the lower your premiums may be.
It’s important to remember that life insurance companies include many factors into their premium calculations. The above factors and more will be part of your premium calculation. If you have any questions about your premiums and why you are paying a certain amount, be sure to talk to your insurance company. Your representative can help you understand the details of your plan.