All consumers are out there to get the best deal on things. You want to get the lowest cost for something at the best quality. Well the same goes for Life Insurance. Pretty much every adult looking for life insurance shops around to get the most quality coverage at the best price. There are different websites and professionals out there to help you research policies, but the basis of all life insurance research revolves around the cost. Who likes to pay for something you don’t know when and if you will benefit from? Well below are some key factors that affect rates of your life insurance premium so you know which policy to choose.
An individual’s health is a key factor in pricing out a consumer’s policy. A person gets penalized if they are not currently healthy or have family history of bad health or susceptibility to certain health concerns. The reason this is so is because life insurance companies want to make the most money by enrolling holders who will live the longest. Poor health leads to short lives. A physical and blood test are often required prior to enrollment to make sure they know your current health status. Things such as high blood pressure, diabetes, high cholesterol, heart problems, etc. are all red flags for an insurer.
Age and Gender
The average life expectancy in the United States is 71.5 in the year 2016. The average life expectancy for males is 67 years and the average life expectancy for females is 71.1 years. With these statistics, you can deduce that a younger individual will get a better rate as an elder and a female will also get a better rate than a male.
What you do for a living effects your life insurance premium because they believe it affects your life expectancy. For example, if you have a non stressful desk job you have less risk of getting into a freak accident than a road worker.
In the United States, life insurance is regulated on the state level. This means that each state in the country has their own life insurance laws and regulations. The regulations and laws include many different things such as who the policy belongs to, who it will go to, guaranteeing amounts, financial responsibility, etc. It is best to speak to a professional and do research in your state because it may make a difference.
Overall it is hard to price out a generic policy for individuals because there are many factors that go into it and the factors mentioned above are the main ones that would affect you.