Factors That Influence Your Life Insurance Rates
When it’s time to
think about life insurance there are several things you’ll want to consider
before doing so. There are factors that you directly control that can reduce
the amount of your life insurance premiums.
Some of these
factors include:
-
Whether you smoke. Smokers pay a
higher premium for life insurance. Most life insurance companies will tell you
that if a person is a smoker they should stop smoking a year before they apply
for life insurance. For a young couple thinking of having a child this is a
perfect time to stop smoking. It will not only benefit the health of their new
baby it also has a direct impact on their life insurance premium rates. If you
already have life insurance and want to lower your premiums stop smoking for at
least a year and then contact your insurance agent to notify them.
-
Your weight. People who are obese
pay a higher premium for life insurance. There are many health problems that
are associated with being overweight. It’s also been proven that people who are
morbidly obese have a shorter life span than those who are fit. It’s important
to lose weight for many reasons, most importantly for your health. Therefore
it’s advised that you speak with your personal physician about a healthy weight
loss plan or other weight loss alternatives that are right for you. If you are
already insured and have lost a significant amount of weight you should contact
your insurance company. They most likely will request that you have a medical
exam to confirm the change in your health before they will even consider
adjusting your rates.
-
Your job. Some jobs are considered
to be high risk and as such those individuals will pay a higher premium than
someone who is working in a low risk profession. If your life situation changes
and you are married or become a parent you may consider switching professions
because of the added responsibility of having a family.
There are factors
which you can’t control which also may influence your life insurance premium
rates:
-
Your age. If you purchase life
insurance when you are young you will pay lower rates than if you purchase a
whole life policy when you are older. Therefore it’s a good idea to consider
life insurance once you have finished college and have begun your first
full-time job.
-
Inherited illnesses. There are many
illnesses which are passed from one generation to the next. When you have your
medical exam the doctor will ask you to reveal any predisposed medical
conditions. You must reveal these because if you don’t and it is discovered
that you had knowledge before and didn’t offer this information, your policy
may be deemed null and void.
If you want to have
some control of your life insurance premiums consider changing the things that
you can so you can reduce the costs.