Buying life insurance can be intimidating. But don't let that discourage you from trying to get the best deal on the policy that's right for you. Because most of us aren't perfect, insurers ask a lot of questions and do medical tests when you apply for coverage to determine how much of a risk you are to insure. The bigger the risk you are, the higher the rate you'll have to pay.
So if you're getting life insurance for the first time or thinking about finding a new policy with a lower premium, it pays to know what criteria insurers use when setting rates and what you can do to improve your chances of getting the best price.
Age and Gender
The two things that play the biggest role in your life insurance rate are your age and your gender. If you are younger, you are at an advantage when you apply for life insurance because you have less risk and are not as close to death. Women also usually get better life insurance rates because they usually have longer life expectancies.
If you are getting life insurance for the first time, apply early in your life. When you are younger you are probably going to get a better rate. Getting married or having children is the best time to start thinking about looking for life insurance - it is when you have dependents that you will need life insurance so that you can provide for your family in the event of a catastrophe.
Smoking
Smoking is one thing that will cause your life insurance rates to go through the roof. If you are 40 and have been smoking since your 20s you will probably pay up to triple what a non-smoker pays. If you want to get your life insurance rates down, one of the best things you can do is to quit smoking. Once you are smoke-free for two or more years your rates will go down.
Health
If you are healthier, then you are going to get a better rate with your life insurance. Having health problems, like high cholesterol or a high probability of heart disease, you will pay a higher health insurance rate. If you have other major health conditions, you will probably pay a higher rate. However, not all health conditions are major, you might pay a little bit of a higher rate if you have minor conditions, but not everything will cause major rate increases.
To know what to expect when you get your life insurance rate it is a good idea to get a physical before you apply. This way, if you have a potential health problem, you can start getting treated and start getting healthy before you get your insurance rate.
Most importantly, don't wait until you have a serious ailment to apply for life insurance. If you do have a health condition, work with a broker who knows which companies would be more likely to insure you at the best rate.
Family history
The final thing that insurers look at that is important to your insurance rate is your family history. Insurance companies will want to know if there are people in your family who have been diagnosed with any kind of serious disease. If you do have family history of disease, then you probably have a higher chance of one day getting sick, so you are going to probably end up paying a higher insurance rate.
Again, use an online quote site or shop around to find insurers with more-lenient standards. For example, say you had a parent who died of a heart attack at age 69. That wouldn't preclude you from getting the best rate because some insurers ask whether you had a parent who died of heart disease before age 60 (as opposed to age 70, which is the standard many insurers use).
So if you're getting life insurance for the first time or thinking about finding a new policy with a lower premium, it pays to know what criteria insurers use when setting rates and what you can do to improve your chances of getting the best price.
Age and Gender
The two things that play the biggest role in your life insurance rate are your age and your gender. If you are younger, you are at an advantage when you apply for life insurance because you have less risk and are not as close to death. Women also usually get better life insurance rates because they usually have longer life expectancies.
If you are getting life insurance for the first time, apply early in your life. When you are younger you are probably going to get a better rate. Getting married or having children is the best time to start thinking about looking for life insurance - it is when you have dependents that you will need life insurance so that you can provide for your family in the event of a catastrophe.
Smoking
Smoking is one thing that will cause your life insurance rates to go through the roof. If you are 40 and have been smoking since your 20s you will probably pay up to triple what a non-smoker pays. If you want to get your life insurance rates down, one of the best things you can do is to quit smoking. Once you are smoke-free for two or more years your rates will go down.
Health
If you are healthier, then you are going to get a better rate with your life insurance. Having health problems, like high cholesterol or a high probability of heart disease, you will pay a higher health insurance rate. If you have other major health conditions, you will probably pay a higher rate. However, not all health conditions are major, you might pay a little bit of a higher rate if you have minor conditions, but not everything will cause major rate increases.
To know what to expect when you get your life insurance rate it is a good idea to get a physical before you apply. This way, if you have a potential health problem, you can start getting treated and start getting healthy before you get your insurance rate.
Most importantly, don't wait until you have a serious ailment to apply for life insurance. If you do have a health condition, work with a broker who knows which companies would be more likely to insure you at the best rate.
Family history
The final thing that insurers look at that is important to your insurance rate is your family history. Insurance companies will want to know if there are people in your family who have been diagnosed with any kind of serious disease. If you do have family history of disease, then you probably have a higher chance of one day getting sick, so you are going to probably end up paying a higher insurance rate.
Again, use an online quote site or shop around to find insurers with more-lenient standards. For example, say you had a parent who died of a heart attack at age 69. That wouldn't preclude you from getting the best rate because some insurers ask whether you had a parent who died of heart disease before age 60 (as opposed to age 70, which is the standard many insurers use).
About the Author:
About the Author: Ashley Jones is a writer and journalist for the Texas insurance industry. Jones helps consumers navigate the complicated insurance industry through investigating topics such as Texas auto insurance, home insurance and life insurance.
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