4 Risk Factors That Will Make Life Insurance More Expensive
Ready to get a life insurance policy, but worried it's going to cost a fortune? Well, there are some things that insurance companies look for when they are deciding whether they will accept you for a policy, and how much they will want you to pay each month in order to keep that policy in effect.
If you know the risk factors, you can find out how many you have working against you and if there is anything you can do to change them:
Your Age
How old you are when you first take out a life insurance policy will have a major impact on the cost of the policy. While many young people don’t think about taking out life insurance, if they were wise, they would, as it only gets more expensive the older you get.
The way life insurance works is the longer you are likely to live, the lower your rate for life insurance will be. It is essentially a betting game that the life insurance company is taking part in, betting that you will live long enough to be worth it to them to cover you before they have to pay out on your policy.
Your Health
Your current health condition as well as the health problems of your family is very important to the life insurance company. They will look at your family history to get an idea of some of the health threats that could be facing you in the years to come and decide whether you are a wise risk. Additionally, they will look at how well you are taking care of yourself. If you are overweight or a smoker, they will consider those signs that you are not taking as good of care of yourself as you should and your rates will likely go up substantially.
Your Job
While you may think your job doesn’t matter, it does to the life insurance company. They want to know if you are in a high-risk occupation. If you are climbing high rises on a daily basis that is considered a job where something bad could happen leading to your death.
Additionally, they will also want to know if you are in a high-stress job. Stress has been linked to health problems, which could also shorten your life.
Your Pastimes
What you do in your spare time could impact your ability to get life insurance and the rates you pay once you do. Life insurance companies shy away from those who take part in risky hobbies like scuba or skydiving. Most companies will want to know if you have taken part in those types of activities for 90 days before you sign up or if you are planning on doing it within the next three months. If you can hold off for 6 months you may be able to use that loophole to your advantage.
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