Factors that Affect Your Life Insurance Premiums

Is skydiving your idea of a perfect weekend or do you prefer lounging on the couch and making your way through a carton of cigarettes? Though these two scenarios are wildly different, they could both result in higher costs when it comes to your life insurance.


Unlike most other products and services you buy, life insurance costs can vary greatly depending on a range of personal factors. Similar to health insurance, life insurance takes certain issues about your lifestyle into consideration when determining your rate. Along with daredevil activities and smoking, these other factors can impact your life insurance quote:


Age: It probably comes as little surprise that age is a leading determinant in the cost of your life insurance. The reasoning is simple: a 25-year-old is likely to be paying into their insurance for far more years than an 80-year-old, so the company can afford to charge a much lower premium for a younger person. This is why it’s recommended a person get life insurance before age 35 when their premiums will be at their lowest.


Health Conditions and Medical History: Depending on the policy, you are likely to need a medical exam before being covered. It’s best to get current conditions like diabetes, high cholesterol and similar factors managed before attempting to get coverage. When under control, these conditions will not affect your premiums as much. Similarly, if you smoke, quitting will get you lower rates.


Unfortunately, it’s not only your current health that’s looked at, but also your family medical history. However, not all carriers put as high of a value on this as others, so if you know you have a troubling family medical history, get an agent who will find you the best rates and carrier.


Lifestyle and Profession: Whether you face danger for fun or as part of your regular work, many insurance carriers will take this into consideration. While this isn’t enough of a reason to quit your job as a fireman or stop mountain climbing on weekends, it’s worth noting that it could raise your rates.


Driving Record: is every road the Indy 500 to you? If so, and you’ve had more speeding tickets than you can count, your insurance carrier may take this into account. However, they typically scrutinize the last 5 years or less the most closely, so you don’t need to worry about the fender benders you had when you were still in high school.


Getting a Better Rate


Along with changing health and lifestyle factors where possible, the best thing you can do to ensure you get a better rate is to choose an agent who is willing to work with you and your individual situation. At Arbor Creek, we’re more than just life insurance agents, we’re financial experts who will talk with you about your concerns and help get you a rate that works for you. To start searching for the right life insurance for you, use our simple contact us form.