Home » Life Insurance » Factors Affecting Life Insurance Premiums And Qualification

Factors Affecting Life Insurance Premiums And Qualification

You might never have really thought about what it takes to qualify for a life

insurance policy or what affects the premiums you pay. By the time you get

around to figuring it out it could be too late. Here are the most important

factors that go into determining what you will pay for your life insurance

coverage as well as whether or not you will even qualify.

Your Age

The older you are, the more you will pay for life insurance. When you take

out a policy at a younger age, the company expects that you will be paying

the premiums for a much longer time period, and therefore your monthly

payments will be smaller. The older you get, the shorter the time period

during which they can expect to receive payments from you. This means

they will increase the premiums accordingly. Your age also has an impact on

your health. The older you are the more likely it becomes that you will

develop a serious health condition that could make it even more likely the

company will pay out on the policy.

Your Health

Everything about your health will be taken into consideration when you apply

for a policy. Most companies will require at least a questionnaire filled out, if

not a visit from a doctor or nurse to check up on your overall health. This

includes things like your weight to height ratio to determine if you are

overweight, blood tests to check cholesterol and look for serious illness, and

sometimes more. They will ask about your lifestyle as well as smoking, drug,

and alcohol use. Even what seems like a minor health issue can result in a

higher premium amount, because it could develop into something more

serious later on.

Your Occupation And Hobbies

If you have a dangerous occupation such as a firefighter, or engage in

potentially dangerous activities like certain sports, this can affect your

eligibility for life insurance as well as your premiums. When you put your life

in danger either at work or at play, the insurance company sees a higher risk

of paying out on the policy. In some cases they may deny you altogether

simply based on the activities you engage in regularly.

These are some of the major factors leading to insurance company decisions

regarding life insurance premiums and whether or not you qualify. Some of

them can’t be changed, while others can—and you should take them all into

consideration if you want to get the best rate on your policy.


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