Ryan Insurance & Financial Services

What factors play into your life insurance rate?

by Sean Ryan on Oct 3, 2016

Do you wonder if you need life insurance, or wonder if your age or health make it a good choice for you?

As a general rule, it's best to purchase life insurance when you're younger and healthy. It makes sense that as we get older, life insurance companies view older potential policyholders as greater risks, and those risks are met with a higher premium. The younger you are when you secure the policy, the more affordable it will be. But no matter your age, if you need life insurance -- and it will help financially secure the future for your spouse and dependents -- you will find it to be worth the investment.

While age is one of the primary factors in determining life insurance rates, there are others to keep in mind, too. Below is a list of items that typically affect life insurance premium calculations. Which of these apply to you, and which of these can you change?

How healthy are you? When you apply for coverage, your current health condition is factored into your life insurance premium. Results from recent medical questionnaires or medical exams usually are factored in, as may be the health of your family.

Do you live a healthy lifestyle? Do you smoke or use recreational drugs? If you do, expect your life insurance premium to be higher.

What do you do for a living? If you are in a high-risk occupation, such as a firefighting or law enforcement, it may affect your life insurance rate.

The type of policy also plays a role. Are you part of the group requesting life insurance, are you seeking an individual policy? Are you looking for term or cash-value insurance? The type of insurance policy you seek can have a bearing on its rate.

As we mentioned, your age at the time of application for life insurance coverage is a critical factor. The number of years you'll be around to pay into the policy factor greatly into the policy rate, and some policies will become better options for you. If you're older, you may find that term life insurance is a better choice, for example.

Contact us at Ryan Insurance & Financial to learn more at 386-738-2000.

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