Life insurance provides financial protection for your loved ones if you pass away. It helps your family pay funeral costs, outstanding debts, and estate taxes. Once you purchase coverage, you might wonder what factors can cause premiums to escalate. Here’s more about why your monthly payment may increase.

What Causes Life Insurance Premiums to Rise?

1. Age

As a general rule, the younger you are, the lower your life insurance premium will be. As you get older, the likelihood that your insurance company will have to pay out on your policy will rise, and so will your monthly rates. This is because older people are considered more at risk for health complications.

2. Health 

Prior to issuing a policy, your insurance company may request health records or require you to get a medical exam. If you have a history of health issues, your premiums may increase.

It’s also possible for your rates to go up if you have a family history of illness. Additionally, smoking often raises premiums since it is linked to potentially fatal conditions and diseases, such as high blood pressure and cancer. 

3. High-Risk Activities

If you engage in high-risk hobbies, such as racing cars or skydiving, your insurance premiums may rise due to the inherent risks. For similar reasons, if you work in the logging, chemical engineering, or aviation fields, you might notice a rise in insurance rates because of the dangers associated with these professions. 

4. End of Term Period 

Term life insurance policies guarantee your premium rate for the duration of the contract. However, if the term ends, you may choose to convert or extend the policy. In this case, you may have to pay higher rates, especially if you miss the deadline. 

When you’re ready to protect your family with life insurance, get in touch with Kelley Agency in Lorain, OH. This insurance agency offers affordable rates on policies to clients throughout Lorain County and the Greater Cleveland area. Call (440) 282-8898 to book an appointment for a consultation.