A Few Facts About Life Insurance Prices
Life insurance prices depend upon a number of things, some of which you have control over, and others you don’t. While it would seem to be in your best interest to keep the price of your own policy low, the number of things you do not have control over will limit just how low you can go.
Your age is a major factor is determining what a life insurance policy will cost, and your age is what your age is, something you can’t change. Life insurance prices are based on your life expectancy, which is largely, though not entirely, based upon what your age is at the time you apply for a policy. There are other factors too. While you can’t change your age, you can apply for a policy when you’re still young. You’ll have a lower premium if you take out a policy when you’re 20 than you will when you’re 30, and much lower premium than a 40 year-old person will have to pay for.
Health is another major factor. Poor health it is not always something of your own doing, and your health situation may be at least partially beyond your control. Poor health usually equates to higher life insurance prices. What you can do if you are basically healthy however, is take steps to stay that way. If you are not in good health, take what steps you can to improve it. Doing so could have a positive effect on your premium payments in the future.
Lifestyle is an area where you definitely have a measure of control. If you are a smoker, especially if you are a heavy smoker – quit. You’ll find that as a confirmed ex-smoker, you’ll pay significantly less for your life insurance. It’s the same with alcohol and drugs. Continued use can ruin your health, and shorten your life. Insurance companies do not like to insure people who seem to be determined to die sooner rather than later. The companies either won’t issue a policy or you’ll pay dearly for one.
You can also bring life insurance prices down by reducing the amount of cover, since the size of your premium is more or less directly proportional to the amount of cover your policy provides. If you reduce the cover below a certain threshold however, you won’t lower the price of the policy any, since it costs a certain amount of money for the insurance company to issue a policy. They will likely charge the same for a $20,000 policy as they will for a $200,000 policy. In addition, it doesn’t make a lot of sense to take out a $20,000 policy if that amount isn’t going to support your beneficiaries for a long time.
The above information won’t help you calculate life insurance prices, but hopefully has helped you understand what is involved. The free quotes we’re happy to give you will help you determine prices for the cover you need. Get in touch with us today. There’s no obligation.