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6 Factors That Will Affect Your Life Insurance Premium


Buying a life insurance policy is a great strategy to safeguard your loved ones financially in the event of your untimely death. It can be difficult to make sense of the many variables that go into determining the cost of life insurance and the parts of an application that could increase or decrease your premium.

One survey found that fewer than 50% of Americans are confident in their awareness of life insurance. When it concerns money, this is particularly true, with the average person’s assumption of the price of life insurance being more than three times the actual price. This post will discuss some factors that can affect your life insurance premiums.

Factors That Affect Life Insurance Premiums

1. Age

The cost of a life insurance policy is heavily influenced by the age of the holder, with younger policyholders typically having to pay lower premiums. As a general rule, the younger you are, the longer you have to make payments on your insurance.

Every life insurance agency determines its age requirement to write a policy. Still, around 75 or 80 years of age, it can be challenging to locate an insurance provider who will provide you with life insurance coverage.

2. Gender

Your life, as well as the lives of your loved ones, need to be protected, irrespective of your sexual orientation or gender identity, and life insurance can do just that. According to a CDC report, Women’s average lifespan (80.5 years) is higher than men’s (75.1 years); hence their life insurance rates are often cheaper than men’s.

Life insurance policies are often available to anyone, regardless of gender expression. Application procedures and requirements are uniform for all applicants. However, if you identify as transgender, your life insurance agency may want to know more about it, and they may want documents or information to back that up.

3. Health

Your life insurance agency may request a health exam before granting coverage. Your premium could be more expensive than someone else’s if you have a background of serious health problems like cardiovascular disease, high cholesterol, diabetes, or tumor.

In a similar vein, your life insurance cost can increase if you have a condition that reduces your expected life duration or increases your risk of developing major difficulties in the future. Insurers may refuse to provide coverage if your illness is considered life-threatening.

family life insurance

4. Lifestyle

There is a correlation between leading a unique lifestyle and higher life insurance costs. Insurance companies can evaluate your risks by engaging in dangerous hobbies such as skydiving, racing cars, or trekking regularly. As a result, life insurance premiums can increase drastically.

Just like how your health insurance premiums can be affected by smoking and excessive drinking, life insurance premiums can also affect how well you take care of yourself. Rather than adventure sports, you can try less risky sports, which could reduce your premiums from your life insurance agency.

5. Coverage Amount

The financial burden of death is eased by life insurance. Therefore, especially if you’re the main breadwinner, it is highly recommended that you acquire insurance that will provide for your family’s financial necessities. Many experts advise purchasing a policy with a face value between 20 and 30 times one’s annual earnings.

Analyze your after-tax liquid resources when deciding on an appropriate level of coverage. How much money do you have stashed away in the bank in the event of an emergency? How much money do you expect to receive from Social Security each month? Don’t take into account your mortgage and credit card installments and all of your monthly bills and expenses.

6. Dangerous Jobs

Locating a life insurance company willing to insure someone in a high-risk occupation, like firefighting or expert stunt work, can be challenging. Such jobs could negatively affect your safety and health. So if you find one, you can expect to pay a larger premium. In addition to the aforementioned occupations, the following are also considered high-risk by insurance companies:

  • Current military personnel
  • Flight crew members
  • Police officers
  • Loggers
  • Construction workers and roofers
  • Steelworkers
  • Farmers
  • Miners

How Can We Help You?

If you’re looking for a life insurance agency that can fulfill your unique needs, then Franklin Life & Annuity is your best option in Houston, Texas. Whether it’s family life insurance you need or final expense insurance, we have you covered. Contact us today to learn more about our policies.

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