Some Factors That Affect Life Insurance

While Life insurance isn’t a subject many like discussing and it won’t replace you when your deceased, it is there to aid your family financially. Life insurance can help cover final expenses and provide income for your household that they wouldn’t be receiving, otherwise. We know a lot of Life insurance rates are confusing and since people have expressed concern about why they are charged a certain rate, we’re offering a bit of advice.

The fact is that when you decide to purchase Life insurance right now, your quote has to be based on your current life circumstances. In part 1 of this series, we talked about 5 different things that could have an affect on a Life Insurance quote. In part 2, we are talking about 5 more.

  • Current Age: If you don’t know already, the younger you are the lower your rate will be. This determining factor is designed this way, because it is believed that you have less risk of passing away at a younger age.
  • Current Weight: Obesity is taken into account. If you are overweight based on an average height to weight ratio, it may be a key component in generating your Life insurance quote. The reason for higher rates is due to excess weight being a risk for other diseases, which is a higher insurance risk.
  • Current Occupation: If you sit in an office all day your risk is pretty low compared to someone who may be a stuntman for a living. The more dangerous your occupation is the more risk of accidental death there is, therefore; the higher the Life insurance rate will be.
  • Your Gender: While most industries strive for gender equality, Life insurance is a little tricky. Based on the proof from medical professionals that women tend to live longer lives, Life insurance quotes for women are, generally, lower than those for men.
  • Policy Type: There are several Life insurance policy options which can affect the monthly rate. The larger the amount of benefit you insure and the longer the term is for the policy will increase your rate. This is due to the risk that you may die before your policy is up, if you have a very long term.
    There may always be more factors based on your individual life circumstances. As no one life is exactly the same, no one quote can be exactly the same. All you can do is try 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.