If you have ever shopped around for life insurance, you know that the premiums for the insurance policies can vary widely from company to company for the same amount of insurance. This is because there are a number of factors that go into calculating the premium of a life insurance policy. Some of these factors you have no control over, while some others are things regarding your lifestyle that you can control fairly easily. Here are some of the most important factors for determining your life insurance premiums.
Your current health is an important factor when insurance companies calculate the premium you will be required to pay for a life insurance policy. You cannot change things like your family history for certain illnesses and chronic illnesses that you have already been diagnosed with, but factors like whether you are a smoker and whether you are overweight will also heavily weigh on the calculation. If you have been denied life insurance due to your health, you can get life insurance with no medical exam required. The premiums will be higher, but it will be better than having no life insurance protection at all.
Your Age And Sex
Your current age and your sex are also big factors when it comes to determining life insurance policy premiums. Younger people are offered lower premium prices because it is less likely that they will die in the near future. This is a good reason to lock in low premiums while you are young, even though you may be paying premiums to the life insurance company for many years. Sex matters simply because women tend to live longer than men. Because it is likely that women will paying the insurance company premiums for more years than men would, they can expect to be quoted lower premium rates for the same amount of insurance.
Your Occupation And Hobbies
Your occupation and hobbies will also be a factor in your life insurance quote. People that are employed in more dangerous occupations, like construction, are more of a risk for the life insurance company than someone employed as an accountant; therefore the employees in the riskier jobs will be required to pay higher premiums. For the same reasons, mountain climbers and skydivers will face higher insurance premiums than golfers and stamp collectors. Your driving records may also come into play, as multiple speeding tickets indicate a risky driver. Because there are so many factors that go into calculating the premium for a life insurance policy, it is best to use a life insurance comparison website like InsureChance to determine which policy will provide you with ample coverage for an affordable premium price.