You have probably heard how important it is to have life insurance, especially if you have people who depend on you. Life insurance can be a confusing things. You might wonder to yourself: “Why does one person pay a lower premium than another person? What are the factors that determine what we pay for life insurance? Are there ways I can lower this?” In today’s blog, AZ insurance provides a few answers.
- Age
Age is one of the most important factors when determining life insurance premiums. It is also the one thing you have almost no control over. The younger you are, they lower your life insurance premium will be. This is a simple matter of risk for the insurance company.
- Smoking/Drinking
Smoking and excessive drink will have a negative impact on your health. When applying for health insurance, companies will ask about your smoking and drinking habits. If you are a smoker, you will be paying more for health insurance, however many companies will offer to lower your rates should you quit.
- Family History
Many medical conditions can be hereditary. If you have a family history of cancer, heart disease, or other major issues, you may find yourself paying more for health insurance. Unfortunately, this is another factor you have no control over. The best thing you can do is minimize your other risk factors. Stay healthy through good diet and exercise to have the best premium possible.
- Occupation
Certain occupations can also impact your life insurance premiums. If you face hazards on a daily basis, than your risk of experiencing an accident is higher, thus the insurance company is facing more risk with your policy. If you are a race car driver, professional rock climber, or underwater welder, you can expect to fork over a little more cash for life insurance.