What factors influence the cost of life insurance?
If you’ve just received a quote for your life insurance policy, then you may be shocked at the total price.
Firstly, it’s important to mention that not all life insurance policy premium quotes are the same for all insurance providers. If you feel that the quote is unfair, then we encourage you to ask for multiple quotes from different providers to find the best one for you.
Aside from this, various factors may influence how much your premium costs per month. This article will highlight some of these factors, allowing you to better understand how a quote is generated.
To kick things off, age is an important consideration for any life insurance policy. Typically, the older you are, the more expensive a policy.
However, this is not always the case. The quote also goes on your health and lifestyle – more on this below.
Health & lifestyle
Alongside your age, your overall health and lifestyle massively impact your life insurance.
For example, if you are currently ill or do not have the best medical background, then your policy will cost more than others.
This is because you are at a greater risk than others, therefore costing you more to insure.
Your lifestyle also plays a key role. For example, if you’re a stuntman for a living, then your insurance policy will also be more expensive. This is because your job is more dangerous, contains greater risk, and has a greater likelihood of death.
The same applies to various other jobs, too. These jobs could include working in a radioactive area, working on an oil rig, or driving trucks for a living.
Policy length & type of life insurance
When shopping around for insurance, you must select a policy type and length. There are different types of insurance, such as term and whole life insurance.
Your choice of insurance determines how much you’ll be paying. For instance, it’s cheaper to purchase term life insurance for ten or so years, as opposed to whole life insurance.
Family health history is an important factor when it comes to life insurance
Finally, another factor that will influence the cost of your insurance policy is the history of your family’s health.
Suppose your family has a history of diabetes, stroke, or heart problems, then your insurance policy is also likely to be more expensive.
Although this is out of your control, it is, unfortunately, a consideration that all insurance providers need to take into account.
To find out more information about life insurance, click here.