Thursday, May 19, 2022

What Factors Affect Your Life Insurance Rate?

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Shreya Christina
Shreya has been with for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

Insurance is intended to protect against financial losses and expenses due to unexpected life events. Majority of people understand the importance of insurance and most invest in health insurance and auto insurance. Many experts agree that these two types of policies are among the most important to purchase. Beyond this, however, many financial advisors strongly urge families to invest in life insurance as well. Unfortunately, it is estimated that as many as one in three Americans do not have adequate life insurance.

A recent survey found that most people without life insurance think it’s financially unattainable. This is often because they do not understand the factors that affect insurance rates. Apart from that, when you use an insurance comparison service, you can get a life insurance quote from different insurers to find the best policy and rate for your needs. In many cases, life insurance is one of the more affordable insurance products on the market today. Let’s take a look at some of the factors that affect your life insurance rate.


One of the biggest factors influencing life insurance premiums is your age. When insurance companies issue policies and set rates, they evaluate your specific risks as a policyholder. Age is seen as an indicator of your longevity and vitality. In general, younger people pay less for life insurance because it is believed that they will live for a while. In most cases, younger adults will survive a term life insurance policy that is only valid for 25 or 30 years. Someone in their thirties who buys a $250,000 life insurance policy with a term of 20 years will pay hundreds of dollars less than someone in their forties who buys the same policy. The same pattern also applies to buying life insurance or universal life insurance. If you want to score the lowest life insurance rates, it’s best to get a policy when you’re younger.


Gender is another factor that determines life insurance premiums, as insurance companies look at gender and longevity statistics. In general, women pay less than men for insurance because women have a longer life expectancy† Statistically, women live slightly longer than men and are considered less risky than men. On average, a healthy 30-year-old woman pays $336 for a 20-year plan, and a 30-year-old man pays about $405 for the same policy.

Medical history


In addition to your age and gender, your medical history is an important variable that will determine your potential risk as a policyholder. As with age, the healthier you are, the cheaper your life insurance will be. When applying for life insurance, you need to answer some questions about your health history and medical conditions. Many insurance companies also require you to undergo a medical examination to determine your current condition. Any chronic illness or other condition, such as high blood pressure or cholesterol, will play a role in your premium rates.



While it may not seem like a big deal, your profession and hobbies also affect your life insurance premiums. Insurance companies consider certain jobs, such as fishermen, miners, and firefighters, to be higher-risk occupations where you are more likely to be injured or killed. Likewise, hobbies such as diving and mountaineering are also seen as higher risk activities. You’ll probably pay more for life insurance if you have a risky job or hobby. In addition, personal choices such as tobacco use and smoking can increase rates by as much as 300 percent as a result of the associated health risks

Whether you’re looking for term life insurance or permanent life insurance, there are several factors to consider that will affect your rates. Comparative shopping for life insurance is the best way to find policies and rates that suit your needs.

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