
Q: What factors determine the cost of life insurance?
A: Life insurance policies are priced based on your life expectancy. There are a variety of factors that influence the cost. These include:
Age
Younger people generally receive lower rates because they represent a lower risk to life insurance companies based on having a longer life expectancy.
Health
Your overall health can lead to higher premiums. High blood pressure, high cholesterol, heart disease and diabetes are just a few of the life insurance risk factors that can impact the cost.
Gender
Men typically have a shorter life expectancy than women, and they generally pay higher life insurance premium rates.
Occupation
Working in a field such as construction is riskier than working in an office. People working in those occupations typically pay higher premiums.
Lifestyle
Risky hobbies such as rock climbing, auto racing or being a weekend pilot can also drive up premiums due to the higher chance of accidents.
Driving record
Having a history of speeding, accidents, or DUIs on your driving record can lead to higher rates.
Tobacco use
Companies know that tobacco use lowers life expectancy. Premium costs increase accordingly.
Family health history
A history of serious health conditions in your family may lead to higher life insurance premium rates because it increases your chances of developing similar issues.
Interested in a life insurance quote? Feel free to call or text my office at (704) 526-0887 or visit us in person at 9539 Idlewild Road or online at MyMintHillAgent.com.