Life insurance premiums differ from person to person. No two people have the same health condition, occupation, habits, and personal characteristics. Because of each person’s unique circumstances, policies must be evaluated on an individual basis. Your insurance will ask you many questions that will give them insight into many different areas of your life. When they have a clear idea of your risk potential, they will be able to put together a policy that will help you accomplish all of your goals.
Here are a few important factors that can influence your life insurance policy.
Age and Gender
Your age and gender will be used to create the foundation of your life insurance policy. These are two determining factors that you can’t change. Even though you cannot change them, you can protect yourself from risks unique to each one. A good example of this is the different health concerns among men and women. Annual check-ups and health screenings will help you maintain your health and discover gender-specific health problems like uterine fibroids or testicular cancer.
Your Health History as Well as Your Family’s Health History
Understanding your health history and that of your family is beneficial. Knowing your own body and what it has been through can give you the information you need to avoid many of the problems that show up in your family’s health history. Disclosing this information to your insurer is essential. It is also important that you are completely honest. This is one area where leaving any information out could result in your policy being canceled.
We all have personal habits. Some are good while some are bad. It is up to your insurer to investigate each one to determine the level of risk it has to your health. For example, smoking is a personal habit that can have deadly consequences if you have a family history of emphysema, COPD, or lung cancer. Even if you quit, you may still bear some of the risks associated with smoking for the rest of your life.
Occupation and Hobbies
Your occupation and hobbies outside of your job will also factor into how your life insurance policy is written. Many industries provide life insurance policies for their employees because of the high-risk nature of their jobs. This includes construction workers, firefighters, law enforcement, and race car drivers. For some, the highest risk revolves around the hobbies they participate in. This can mean skydiving, rock climbing, or any activity involving ATVs or motorized vehicles. While it is unlikely that you will want to give up your job, you may want to reconsider some of the more dangerous hobbies if you want to keep your insurance premiums low.
The Policy You Choose
The type of policy you choose will also determine how much your premiums are and how much coverage you can afford. For some, a one-term policy is more affordable and can be cashed out if they reach maturity and haven’t been borrowed against. A whole life policy is more expensive, but more often than not, it will provide a much higher payout that your family can rely on in place of your income.
It is important to know your potential level of risk when applying for a life insurance policy. Your policy and individual rate will be as individual as you are. When you are ready to learn more, all you have to do is call our agents at Premier Risk, LLC. We have the answers you need and can guide you through the process of choosing a policy and making it your own.