subject: Factors For Determining Life Insurance Rates [print this page] Life insurance is similar to most other types of insurance in the risk that you present will be the prime determinant factor that you end up paying for it. Your premiums. However it is different in one noteworthy aspect and that is that insurance companies easy complex system it factors in any number of combination of risks to come up with the final cost that you end up having to pay for it.
(Your Age) is going to be the first thing that they look at, and the greatest determinate factor in any life insurance policy as it pertains to cost. So quite simply if you're a young person, perhaps in your 30s you can reasonably expect to pay less than a person buying a similar policy but happens to be in their 40s. Now it is worth noting here that life expectancy rates do vary from country to country, so where you live will be considered.
(Your Lifestyle) will also be taken into account and that also includes your occupation. What you do for a living. For instance a person like a coal miner can expect to pay higher premiums for life insurance than perhaps a schoolteacher or an accountant. Then also if you engage in other risky behaviors like smoking for instance, or skydiving those things will also be for sure factored into the equation to determine the cost.
(Your Health) will also be evaluated and this will be done by having you undergo a general medical exam. What they'll be looking for his health issues that can have effect on how long you're going to live. Problems like diabetes, and chronic heart disease for instance will play in heavily to ramp your costs up. At the same time though, if your physical exam shows that you're in good health, that will of course work in your favor.
(Your Sex) also will be taken into consideration and on the surface while this may seem discriminatory, it's really not because it's backed up by statistical fact. That is that generally speaking, women tend to have higher life expectancy rates, so if you're a woman you can expect to pay less than a man. However, if you're a woman with perhaps health issues and who also has risk factors you can expect to pay more, in spite of your sex.
(Your Coverage) also is a big one they will look at when determining your cost. It's the same with anything you buy, and that is that the more you expect to receive, the more it's going to cost you. So if you're looking for a higher payout you can expect to pay higher premiums. Also another thing to consider here, is the prices vary depending on the type of coverage. If your getting a term, or a whole life policy.
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by: Andrew Scherer
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