The Amount of Coverage Purchased
The Duration of the Policy’s Term
The duration of the life insurance policy’s term is another factor that may impact your policy’s price. Longer-term policies usually come with a higher premium, while shorter-term policies may come with a lower premium. Whole life insurance tends to cost significantly more than term life insurance.
Age has a significant impact on the price of your life insurance policy. In general, the younger you are, the lower the cost of your life insurance policy may be. For this reason, it’s usually advised to buy life insurance at a young age if you can. This may allow you to lock in a lower price and pay less for your coverage.
Your Health and Family History
Another important factor that may have an impact on the price of your life insurance policy is your health. Before deciding on your premium, many life insurance companies will require information about your health history. You may also be required to submit to a medical exam. The better the results of your medical exam, the lower your insurance premiums may be. Likewise, a history of certain medical conditions or procedures may raise your life insurance premiums.
Use of Tobacco Products
The use of tobacco products is associated with many different health problems and a shorter lifespan. As a result, reporting that you use these products may raise your life insurance premiums. Even if you no longer use tobacco, a history of tobacco use may still impact your life insurance premiums. However, some insurance companies may consider you a non-smoker if you have abstained from tobacco for a significant amount of time (usually at least 3-5 years). If you’re an ex-smoker, Sproutt automatically matches you with the best carriers for ex-smokers.
Certain riskier careers may cause your life insurance premiums to increase since they can raise your risk of dying unexpectedly. For example, if you report that you work as a police officer or race car driver, or that you work in another profession that carries considerable risk, you may have a higher premium than you would have with a different profession.
Certain lifestyle choices may raise your life insurance premiums if they are deemed risky by the insurer. For example, you may pay a higher price for life insurance if you spend time scuba diving, skydiving, skiing, parachuting, or hang-gliding.
Most types of travel will have no effect on your life insurance premiums. However, if you frequently travel to countries considered risky by insurance carriers, such as those with a high incidence of disease or war, you may pay higher premiums.