What Makes Life Insurance Cost More?
If you’re looking for affordable life insurance to protect
your family you may want to learn what may increase the cost of your policy.
The fact is, nobody wants to pay more than they have to for
insurance. And, knowing what may increase your cost of coverage is a good idea,
to help you understand how you may save some money on your policy.
Life insurance carriers usually consider several key factors
when assessing you for coverage and determining what rate per $1,000 of life
insurance to charge you for your policy.
Increase Cost of Life Insurance
- Age – Rates for
coverage increase as you get older.
- Gender – Males
are charged more than females for insurance, because women have a longer life
- Health – If you
have a health condition it may cause you to receive a higher rate.
- Weight – Are you
overweight or obese? If so, you will likely pay more for your insurance than
someone who is of average weight.
- State of Residence
– Some insurers may have higher losses in certain geographical regions (cities
or states) and charge a higher premium for applicants who reside in those
- Driving Record – Have
you had a DUI or DWI in the past 5 years?
- High Risk Occupations
– Long haul truck driving, fire fighters, commercial fisherman, loggers,
aircraft pilots, roofers and garbage collectors, are among several high-risk
jobs that are charged more for life insurance due to risk.
- Dangerous Hobbies
– Mountain climbing, race car driving, B.A.S.E. jumping, skydiving, scuba
divers, are among several types of high-risk hobbies that are charged more for
- Lifestyle –
History of Alcoholism or Drug Abuse increases your risk of developing chronic
health issues and a shortened life expectancy.
- Tobacco Use – Any
form of tobacco use will increase your premiums for coverage due to increased
risk of cancer of the lungs, throat or mouth. Smoking includes use of all types
of tobacco; such as, cigarettes, pipes, cigars, marijuana, chewing, etc.
Disease – This includes high blood pressure and other heart issues which
can lead to early death. If you have high blood pressure but it’s controlled by
medication, you may not see too much of an increase in premiums.
- Depression – If
you’re taking medication for an ongoing depressive condition, you will likely
pay a higher rate.
- Cholesterol –
High cholesterol isn’t a big deal if you are controlling it with medication.
But, if you are not taking meds, or the meds are not doing enough, life insurance
companies may view you as a higher risk for life insurance.
- Diabetes – People
with Type 1 diabetes typically have shorter life expectancies, so your rate
will depend on how well controlled your condition is and what you need to
control it. If well controlled, type 2 diabetes is less serious and should
cause a smaller increase in your price for coverage.
- Asthma – If your
asthma is under control you may not see much of a price impact. If you’re on
steroidal medication that may increase your premiums.
- Cancer – If you
have or have ever had cancer, you will likely pay a higher than standard rate
for life insurance.
- Health Issues –
HIV/AIDS, COPD, Emphysema, Stroke, Heart Attack, Lupus, Cancer, Epilepsy,
Tobacco Use, Diabetes, Alcoholism, Drug Abuse or other chronic health problems.
- Family Health History
– If your family has a history of cancer or heart problems, you may pay a
higher than standard rate for your life insurance.
Other Personal Risk
Factors for Pricing
Credit history, driving history (especially a DUI within the
past five years), and criminal history. No life insurance company will accept
an application from someone who is in jail, awaiting trial, or is currently on
Size, Term and Type
of Life Insurance Policy
In addition, each of these factors will impact the cost of your life insurance policy:
- Size – Higher levels of insurance increase your rate per $1,000 of coverage. The higher the amount of life insurance you buy, the higher your annual cost of coverage.
- Term – The longer
the duration of your term life insurance policy, the higher the rate charged for your policy.
- Type – Permanent
life insurance which provides guaranteed lifetime protection may cost up to 2-3
times more than temporary (term) life insurance policies.
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What Makes Life Insurance Cost More?
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