Life insurance is often considered a worthy and fundamental part of sound financial planning.
Many adults should have basic life insurance in place and some should also have a. But it’s worth noting that all life insurance policies are not equal – and some may cost more than others, depending on your personal circumstances.
If you don’t currently have a life insurance policy then start by getting a free price quote so you know exactly what to expect.
As you embark on the application process, it helps to fully understand the factors that influence costs.
5 factors that influence life insurance rates
If you’re a working adult, spouse or parent, you’ll likely benefit from having some. Though millions of Americans would benefit from having life insurance, that doesn’t necessarily mean that they will have the same experience or pay the same price. That’s because the cost of life insurance varies from person to person and is dependent on a such as:
- Age: This is an obvious one but should not go overlooked, even if you’re older and healthy. is less likely to run into health issues than an older one. So, younger policyholders are a less risky bet, even if both groups are equally healthy. Accordingly, the younger you are, the less you’ll have to pay. As you age, the rate will rise.
- Health: If you’re sick, have a current medical condition or any pre-existing ones, you may pay more for life insurance than if you were fit with no issues. This is especially true for smokers as the health issues they are prone to are well known, making them problematic to insure for a reasonable cost.
- Gender: It may seem unfair for one sex to pay more but, statistically, women live longer than men. Since men often (but not always) die at an earlier age than women, they can expect to pay more for their life insurance coverage.
- Policy type: Not all policies are created equal. Some offer . Some do not. Some insure you for while others cover you throughout your life. Different policies have different costs. Understand the difference between ….