What Factors Will Affect My Life Insurance Quote?

What Factors Will Affect My Life Insurance Quote?
If you are thinking about applying for a life insurance policy soon, then you already have a number of important matters on your mind. These include how your loved ones will manage without the income you provide after you pass away, whether to buy whole or term life, the potential tax benefits of life insurance, and how your beneficiaries would go about making a claim after you’re gone.
But certainly, one of the questions people always ask when comparing their life insurance options is how much it’s going to cost and what are the main factors that will affect that cost.

Factors That Affect The Cost Of Life Insurance
Anyone getting ready to invest in life insurance needs to understand the basics, at least, of what will affect their premiums, aside from just the size of the death benefit.

The most obvious factor in this regard is age. The younger you are, the more likely you are to live longer and thus pay more in premiums before you pass away. That means your premiums are going to be lower if you buy life insurance earlier rather than later in life.

But gender is also a major factor. Women in the US live, on average, 5 years longer than men. Therefore, a woman’s policy will always be lower-priced than that of a man IF all other things are equal – which they might not be.

Third, the type of policy you buy will greatly affect the price. A whole life policy, for example, accumulates cash value and has a guaranteed death benefit regardless of when you die (as opposed to a set coverage term with term life). That’s a more valuable policy, so it’s going to require a bigger investment; and it may well be worth that extra investment.

Finally, anything that shortens your life expectancy will tend to drive up premiums on your policy. That could mean a dangerous occupation, preexisting health conditions, a poor driving record, or high-risk hobbies like skydiving and mountain climbing.

Finding Your Best Life Insurance Quote
Many people don’t bother to apply for life insurance because they fear it will cost too much, but the truth is, you can usually get an affordable policy that will meet the needs of your beneficiaries if you look for it.

You may fall into certain categories that would increase risk, but chances are, you are in lower risk “pools” in other respects. It’s not just a single factor, remember, that determines your premium, but a host of factors.

Comparing and contrasting policy types and insurance companies, and asking knowledgeable agents the pertinent questions will help you find a policy that’s right for you.

You need to play with the possibilities a little, juggle the policy features and types, and compare quotes on an apples to apples basis.

For example, by settling for term instead of whole life but opting for a 20 year term, you might pay a lower premium. Or, you could lower the death benefit slightly but extend the term of term life. Or, you could choose an insurer who doesn’t use credit scores to adjust insurance rates over another who does. The point is there are many possibilities and there’s almost always a way to get an affordable policy if you work at it.

To learn more about how life insurance works, or for a free quote, contact Flagler County Insurance Agency today!