5 factors that affect life insurance rates

As you begin the process of applying for life insurance, it helps to know the factors that affect the price.

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Life insurance and the financial protection it offers are what many financial advisors consider to be worth it.

Most seniors should have basic life insurance and some should also have a extension process. But it’s worth noting that all life insurance policies are not created equal – and some may be more expensive than others, depending on the circumstances.

If you don’t currently have life insurance, or you just want to improve the coverage you already have, you can start now by getting a quote. This is the first step in determining what you should pay.

When you start the application process, it helps to have a good understanding of the factors that affect the price.

5 factors that affect life insurance rates

If you are a senior at work, a spouse or a parent, you may benefit from having more type of life insurance. While millions of Americans may benefit from having life insurance, that doesn’t mean they will have the same coverage or pay the same price. That’s because the cost of life insurance varies from person to person and depends on a different things such as:

  1. Age: This is obvious but should not be ignored, even if you are old and healthy. A younger worker is less likely to experience health problems than an older one. Therefore, minor leaguers are a risky bet, even if both teams are healthy. Therefore, the younger you are, the less you will have to pay. As you get older, the rate goes up.
  2. Health: If you are sick, have a current or pre-existing medical condition, you may pay more for life insurance than if you had no medical condition. This is especially true for smokers because their health problems are well known, which makes them difficult to insure at a reasonable price.
  3. Gender: It may seem unfair for one man or woman to pay more but, in the calculations, women live longer than men. Since men often (but not always) die younger than women, they can expect to pay more for their life insurance.
  4. Type of procedure: Not all policies are created equal. Some give ways to get money. Some don’t. Some guarantee you a fixed term while others offer lifetime protection. Different policies have different costs. Understanding the difference between comprehensive and long-term insurance. The type you choose (and what you qualify for) will affect your rate.
  5. Past medical history: Your genetics come into play when you get life insurance. A history of cancer, heart disease or diabetes can be a sign of your health. If you have a family member with any health condition, it may be a factor in your life insurance premiums.

Not sure how this might affect the rates you’re eligible for? You can view prices from several sources right now to see what you might pay.

Other purposes of life insurance

While the above five factors are some of the most important when trying to determine how much life insurance is worth, they are not the only factors a company can answer. Things like your job, your driving record and your personal life can also help. Anything that is considered dangerous can result in a higher rate.

Conversely, if these things don’t matter, don’t expect them to affect the price.

As mentioned above, life insurance is something that most seniors should have but the premiums they pay to have it vary greatly. Know what to expect before you sign up. Talk to a life insurance professional today and get a free quote.