Why Life Insurance Rates Can Vary So Much From Company To Company
If you are shopping for life insurance and are unsure why life insurance prices can
be as high as they are, it pays to understand some of the factors that can affect the cost of a policy. The good news is that some of the criteria that can affect life insurance prices are things that you can influence. However, some factors that affect life insurance rates cannot be affected easily and if the cost of a policy is too high, you may need to look elsewhere for your insurance coverage.
One of the first things that can make life insurance rates vary so much from company to company is whether or not that company requires you to have a medical exam. Companies that require medical exams may have lower life insurance rates because they are able to deny potential customers with health problems that may make them insurance risks. However, the cost of some of the tests and exams can be quite high and this may make it difficult for some people to afford even though the life insurance prices may be more affordable.
The size of the policy can also affect life insurance prices that you will pay for your policy. This is because a larger policy represents a higher risk for the insurance policy and so insurance companies charge substantially higher life insurance prices for larger policies. The only way to influence this factor is to shop effectively for life insurance prices and compare the insurance rates of more than one company to find one that you can afford.
Life insurance rates can also be affected by factors such as age, sex, and whether or not you are a smoker. Remember that insurance prices represent the pool of money that an insurance company is building up in order to pay off any future claims you may have. If you are older, your insurance rates need to be higher because there is a greater chance that you will be making a claim sooner than later.
Men also tend to have higher life insurance prices to pay than women of the same age might. This is because men tend to have shorter life spans and because they are statistically likely to make claims sooner, men's insurance rates are higher as a result. There is little that you can do to affect life insurance prices that are based on gender but by getting life insurance at a fairly young age you can end up paying lower insurance rates for the same coverage than if you waited until you were older.
Shopping around is the key to finding the lowest life insurance prices possible. You can compare the costs of no-medical policies and the life insurance rates that are charged for insurance policies that require a medical examination. You can also find out how the risk factors in your life can affect the life insurance rates you will be paying and sign up for the policy that suits you the best.
Life insurance rates are an unavoidable fact of life if you want to make sure that you are leaving your loved ones protected. Taking the time to make sure you are not scrambling to make your payments is a good way to make sure that your coverage is not interrupted for any reason.
by: ann pan
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