Some Factors That Affect Life Insurance
Life insurance exists to help your family pay for final expenses in the event of your death and to have a sustainable life, especially if you were the main source of income for your household. To some, Life insurance rates are confusing and people may often wonder why they are charged a certain rate.
The truth is that if you opt to buy Life insurance right now, your quote will be based on your current circumstances. In part 1 of this series, we’re going to talk about 5 different things that could have an affect on a Life Insurance quote.
- Health History: Just like an academic record follows you all the way through school, so does your medical history follow you through life. If you have had any sort of chronic illness or have records of health problems you may be deemed a health risk and your rate will, generally, be higher.
- Family History: Your own health history isn’t enough of a determining factor for Life insurance, the rate is even derived by looking at your family’s health history, too. If it turns out that your family has a history of hereditary illnesses, cancer or heart disease it is most likely that your Life insurance rate will increase.
- Current Health: In most cases, a medical exam will need to be completed. The amount of Life insurance you are trying to purchase may determine how in depth your medical exam will need to be. It should be no surprise that people who show signs of good health will see lower insurance rates.
- Smoking Habit: The bottom line is that smokers will pay more for health insurance due to the many risks associated with tobacco use. What happens if you decide to quit? It’s important to note that you won’t see changes in your rates right away. Most of the time, you won’t see changes until one year after you quit.
- Drinking Habit: Just as smoking is regarded as bad for your health, so is heavy alcohol consumption. The truth is that the more you drink the more it impacts your quote. You are going to be more likely to pay more for Life insurance if you drink often.
While there are varying factors and different life circumstances on a case by case basis, these are general guidelines policy writers follow. The best thing you can do to ensure the lowest rate possible is to be the healthiest you that you can be!
To learn more about Life insurance policies, rates or determining factors please feel free to call The Scott Godwin Agency.