4 Factors That Affect Your Life Insurance Quote

Most types of insurance provide financial protection for you in the face of an unexpected event. From health insurance and auto coverage to homeowners insurance, these policies help out when you get sick, have a car accident, or experience damage to your home. Life insurance, however, is meant to provide financial support for your spouse or other loved ones in the event of your death. The premiums that you pay for a life insurance policy provide a death benefit for your beneficiaries. The proceeds from life insurance can help take care of final expenses, pay off debt, or provide financial support to your loved ones.

Deciding to get life insurance coverage requires that you consider various factors for your particular situation. As a general rule, if you have dependents that would require support upon your death, you should consider life insurance. Other variables such as your age, amount of debt, and financial obligations to your family will determine your need for a plan and how much life insurance you need. If you are considering life insurance, there are a few factors that will impact your rates.

Everything from your age to your medical history can have an impact on your life insurance rates. It will be important to shop around and compare various companies, plans, and rates. A life insurance quote will explain your potential rate and the coverage amount. Let’s take a look at some of the factors that will affect your life insurance rate.

1. Age


The biggest determinant of life insurance rates and coverage will be your age. When issuing policies, insurance companies consider the risk associated with the policyholder. The older a person is, the more likely the insurer will have to pay out the policy. As a result, insurance rates increase with age. When it comes to getting life insurance, the younger you are, the lower the rates will be. When you purchase life insurance as a young adult, you lock in those lose lower rates for the duration of the policy.

2. Gender


Aside from age, gender is the second major factor of life insurance rate pricing. Similar to age, insurance carriers use historical statistical data to approximate how long someone will live based on their gender and specific profile. Statistics show that women, on average, typically live almost five years longer than men. As a result, women usually pay life insurance premiums for a longer period of time than men. Insurance companies will assign slightly lower rates to women policyholders because they have longer life expectancy rates.

3. Health History


Most insurance companies will require a medical exam, access to your medical records, and a health survey before issuing a policy. Any quote that you receive will be based on your history of medical conditions and issues. People without a history of any serious medical conditions will have lower rates as they have lower health risks. On the other hand, people with a lengthy medical history that includes serious illnesses such as heart disease or cancer will have higher premiums. Other factors such as weight, cholesterol, and blood pressure are also considered.

4. Lifestyle


Depending on your answers to questions about your lifestyle, you may experience higher life insurance rates. If your pastime includes racing cars or skydiving, you’ll be seen as higher-risk and may have substantially higher rates. Additionally, if you have a profession that is perceived to be dangerous, such as mining, fishing, or fighting fires, you might also see higher premiums. If you are a smoker, you’ll also be seen as a higher risk for serious disease and will be charged more for life insurance.

If you’re considering a life insurance policy, several factors will impact your individual rate. You’ll want to get several quotes from a few companies and keep in mind that unless you are a younger adult in excellent health, you may see slightly higher rates than others.

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