5 Factors That Will Affect Your Life Insurance Policy Quote
Shopping for life insurance is a great first step towards financially protecting your loved ones in the event of your passing. Since there are many factors that determine how much you will pay for the premium, understanding what goes into your insurance quote can help you better understand how the provider came to a price. Here is a look at five key factors that will affect your quote.
1. Medical History
One of the ways providers assess risk is to delve into your medical history. If you have had previous health problems such as high blood pressure, diabetes or high cholesterol, your provider will likely charge you more for the premium compared to if you have had a history free of chronic conditions.
Age plays a primary role because the older you are the riskier you are to the insurance company. Ideally, the younger you are able to purchase insurance the better because provided you don’t have a poor medical history, you will pay less for coverage.
Investopedia reports that women on average live five years longer than men. With this in mind, males typically pay a higher premium based on these averages.
If you enjoy riskier activities such as rock climbing, bungee jumping or skiing on advanced courses, then you will pay more for life insurance. The reason for this is when you participate in high risk activities, you elevate your risk in the provider’s mind.
If you smoke, Investopedia states you’ll pay as much as twice the amount nonsmokers pay for the same premium.
To learn more about life insurance policies feel free to contact the Schumacher Insurance Agency. Our knowledgeable agents can help you choose the best policy to protect you and your family.