Life insurance is an important investment to ensure your loved ones are taken care of after your passing. Premiums are calculated on an individual basis—depending on a number of factors. The guide below explores some of these determining factors and what you can do about them.

What Affects Life Insurance Rates?

1. Age

Age is the leading factor that influences your premium costs—the older you are, the more expensive premiums are likely to be. Therefore, if you are interested in a policy, opt into the program while you are young and healthy to lock in a lower rate.

2. Gender

On average, women live longer than men. Research has also shown that women are less likely to engage in risky behaviors and see the doctor more regularly, decreasing the likelihood of serious health problems. As a result, they tend to pay less for insurance.

3. Individual & Family Health

Your insurer may request access to your medical records or that you undergo a physical exam. The results of your test—which will include your weight, cholesterol level, blood pressure readings, and information about any preexisting conditions you have—will then be considered when deciding your premium. 

4. Smoking                  

Use of tobacco is considered a major risk factor since it jeopardizes your health. While this means that smokers will generally pay more, the reverse is also true. If you quit the habit, inquire about a lower premium. 

5. Occupation & Lifestyle

You’ll pay more for life insurance if you have a job that involves high-risk work or an unsafe environment. The same logic extends to hobbies. If you skydive on weekends or regularly scuba dive, you might be expected to pay a higher premium.

6. Driving Record

Some companies ask to see your driving records, usually taking into account the last three to five years. Your rates may be raised as a result of accidents or traffic violations. However, a clean record may work in your favor.

Shopping for life insurance? Mid-Alliance Insurance Associates LLC of Lincoln, NE, will work with you to find a plan that suits your needs and lifestyle. They provide detailed information on your options before you sign up, so you know you’re getting the best plan possible for your circumstances. Call (402) 421-7800 to speak with a representative or learn more about their products on their website.