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Having life insurance can contribute to your family’s financial stability after you die. Beneficiaries named in the policy will receive the death benefit money in a lump-sum. The funds can go toward sustaining their livelihood and paying funeral costs. To keep the policy active while you’re alive, you must pay a monthly premium. Several factors contribute to how this rate is determined, including those listed here.

What Determines Your Life Insurance Quote?

1. Age

How old you are when you apply for life insurance factors into how much you’ll owe in monthly payments. As younger individuals in optimal health are expected to live longer, premiums are generally low. As more life-threatening health issues can develop with age, such as cancer and cardiovascular disease, older policyholders tend to have higher premiums.

2. Driving Record

Hixson-Tennessee-life-insuranceAs part of the investigation into your background, a life insurance agent might reach out to the Department of Motor Vehicles for a copy of your driving record. If you have multiple violations for speeding, drunken driving, and other bad behavior, expect your monthly premium to be high; this is because your poor driving could lead to a fatal accident.

3. Family Medical History

Even if you have a clean bill of health, life insurance agencies will consider your family’s medical history when calculating premiums. Whether multiple family members have been diagnosed with breast cancer is one example. With this information, they have a better idea of whether genetics put you at risk of developing chronic illnesses and other hereditary diseases that put your health at risk. If they find a history of medical problems, the premium could be higher as a result.

 

To secure your family’s future, reach out to the professionals at Southern Insurance Associates. Since 2002, the Hixson, TN-based insurance agents have dedicated themselves to helping clients throughout the tri-state area find the right policies for their current and future needs. To find out about the different life insurance options, call (423) 296-0626 or visit the agency online. Connect on Facebook for helpful tips on choosing policies.

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