Unfortunately, death is a reality for all of us, and that means you have to plan for what your family will do when you are no longer there to support them and care for them the way that you used to. One way that you can do that is through life insurance. But life insurance can be quite expensive depending on several factors. If you’re looking to buy some, you should be prepared for what those are.
1. Age
Because you are more likely to pass later in your life, the younger you are when you take out the policy in the first place the lower the price is going to be. The basic premise is that the insurance company figures that a 20 year old will live another 60 years (at least based on current life expectancy projections). So they know they can get payments from you for another 60 years. Therefore you get the lower rate. If you’re already 60 or 70 however … well they’re not going to get money from you as long before they will have to pay out and that means your rate will be higher. Life insurance for over 50’s is calculated in a different way.
2. Smoking
Do you know all the different health problems that could arise as a result of you smoking? Did you know that it’s not just about the health of your lungs but the health of your entire body? Well smoking causes a lot of health problems and those who smoke have a much shorter life expectancy. That means, if you’re a smoker, your health insurance is going to cost more than someone who doesn’t smoke or has never smoked in their life. The insurance company knows there’s a higher chance you’ll have to cash in your policy (or rather your loved ones will) earlier.
3. Health
In most instances, especially if you get a traditional life insurance policy, they want to know your overall health before they give you a quote as well. They may require you to go to their doctor so they can be sure you aren’t suffering from any medical conditions that are going to reduce your life expectancy. If you have a medical condition it’s going to cause your life insurance rate to go up even more because you have a higher chance of needing the policy sooner than others with good health. E-cigarettes in life insurance terms are not counted as smoking at the moment.
4. Lifestyle
What do you like to do in your normal life? Are you a professional boxer? Do you race motocross? Or are you a stay-at-home parent or an accountant? The type of professional or even fun activities that you engage in are going to make a big difference in your policy. Someone who does dangerous things, whether for fun or profit, is more likely to pass sooner than someone who doesn’t. As a result, you will also pay more for your policy so they can be sure they get more money from you in case you need the policy sooner.
5. Family Medical History
How healthy is your family overall? Do your parents have a history of health problems? What about their parents? The history in your family is going to play a big part as well because a lot of health problems are hereditary. That means if your parents have them it’s highly likely that you will as well and that means higher rates as well. You can find more out about life insurance and family history in our blog section of the website.
Getting life insurance is definitely not cheap, but it’s going to be important when you’re trying to care for your family when there’s no way for you to do it physically anymore. Consider each of the answers to these questions and you’ll have a better idea of what your quote is going to look like, and how you can keep supporting your loved ones no matter what.