Don’t you just hate it when someone is bragging at the office “water cooler” about the cheap rate they got on their insurance? As a consolation, you should know that they could be exaggerating their savings or more likely, they’ve chosen their insurance without covering all the bases. It isn’t always the best idea to go with the cheapest option. You need to be sure you get the coverage you expect, even if your premium is a bit higher.
When it comes to life insurance, there are many options out there, but it can also help you to have a better understanding about the factors that affect life insurance premiums, such as:
- Age- The age when you first obtain the life insurance is going to dictate your premium. This is true with all types of life insurance, but with some, such as whole life, your premium will be locked in for as long as you keep the policy in force by paying the premiums.
- Type- Premiums vary widely between different types of life insurance. Permanent policies cost more to start, but term ones can get very pricey when you get older.
- Death benefit- The more the death benefit, the higher the premium.
- Tobacco use- If you have never smoked, you will pay a lower premium than someone who has smoked or currently uses tobacco products.
- Health history- Your health history plays a role in the underwriting process, as can your family health history. In some cases, a medical exam will also be required before the policy is written and the premium could be altered as a result of exam results.
- Driving record- This is one that surprises many people. You might wonder why having a couple of tickets for aggressive driving is a problem. The reason is because such behavior is a risk factor, and most increased risk factors increase premiums.
There are other factors that can also come into play with life insurance premiums, and at Elite Benefits Group, we are happy to provide in-depth answers to your questions about what you can expect. We offer various options for life insurance, including universal, variable, and whole life insurance. Reach out to us today to learn more.