Life insurance is a major investment and a great way to protect your loved ones financially. Over a period of years, even a slightly lower premium can yield major savings.
Despite its popularity, many of us don’t realize how many factors, some within our control can affect the premium we pay. Life insurance agency Colorado have identified at least 8 factors that when combined go into determining the premium you’ll pay. #1 Age Though we know this very well that age is just a number, it is the most important factor when it comes to life insurance. Since there is less risk of death, younger individuals receive lower rates. Therefore, Life Insurance Agency Colorado recommend purchasing your life insurance policy as young as possible. However, you’re never too old to buy any life insurance as there are many affordable options available to protect you and your family. #2 Current Health Most life insurance policies have a medical exam as part of the process. This will analyze your cholesterol, blood pressure, and other health issues. The results of the exam will tell whether there is a problem now or a potential future problem. If you are healthy, you’re probably going to pay less for your premium and if not, you’re going to typically pay more. #3 Smoking Smoking is known to have numerous health risks that can lead to cancer and other fatal diseases. Smokers pay more for life insurance simply because of the many health risks. Just one of the good reasons to quit smoking and this could qualify you for much lower life insurance premiums. #4 Gender Next, to age, gender is the biggest determinant of pricing. Statistics make gender a factor in life insurance coverage. Since women generally live longer than men, they also tend to have lower insurance rates. #5. Occupation There is a group of dangerous occupations that life insurance policies see as very risky. In some cases, it can end in a denial of coverage because of their severe risk of death. If you are a skydiving instructor or race cars for a living, a life insurance company is going to look at you as a higher risk compared to a teacher or accountant. This can result in a higher life insurance rate. This also goes for occupations that can have a long term effect on your health. For example, do you work with toxic chemicals? If so, you may pay more. #6. Family Health History A family history of illness, especially hereditary diseases, could factor into your life insurance premium and increase the cost of your coverage no matter even if you have no current health issues. Carriers are usually interested in any conditions your parents or siblings have experienced, particularly if they contributed to premature death. This could lead to higher premium rates. #7. Marital Status If you and your spouse are applying for life insurance together, you may actually save money. You won’t get a lower rate just because you’re married, however, there is savings potential with a dual application. #8 Drinking Drinking alcohol is another risky habit as of smoking when it comes to life insurance coverage. Your consumption of alcohol will affect your life insurance rate – those that drink more will pay more. What is the significance of each of the above factors on your life insurance rate? Ultimately, it depends on two things.
Contact Life Insurance Agency Colorado and let us help you find the best company at the lowest rate based on your health and lifestyle. Also Read: What is a Beneficiary in a Life Insurance Policy and How to Select the Right One?
0 Comments
|
Cohealth Brokers
We are Colorado based Health Insurance Brokers. Archives
April 2024
Categories
All
|