How Much Will Your Life Insurance Cost?

The premium you pay for life insurance is absolutely unique to you. The reason for that is because there are so many factors that play a part of how a carrier determines your life insurance premium. Here’s what affects how much you pay for life insurance.

Age. This is a no brainer- the older you are, the more you pay. That’s why it’s important to lock in a life insurance rate today because as each year passes by, the rate only goes up, up, and up.

Sex. Men pay more for life insurance than women. This is based on actuarial data, which shows women live longer than men. For example, a healthy non-smoking male will pay about $459.00 per year for a $100,000 20 year term policy, while a woman will pay $330.00 per year.

Height and Weight. All life insurance carriers have their own underwriting standards for height and weight. These height and weight tables will put you into a certain health class such as Standard, Preferred, or Preferred Plus, and this plays a big role in what your premium will be. If you are overweight or obese, then you are considered higher risk for heart disease, high cholesterol, and other health issues, so your rate will be higher. Many carriers will deny you for life insurance if you are over the maximum weight allowed according to their underwriting standards.

Smoking Status. If you smoke, you’ll pay more for life insurance. The rates can be as much as 2 or 3 times more. For example, a 52 year old non-smoking male will pay $352.00 per year for a $100,000 20 year term policy. If he smokers he’ll pay $820.00 per year. Big difference!

Blood Pressure and Cholesterol. During the life insurance physical exam, your blood pressure will be checked and your blood will be drawn to check your cholesterol levels. Blood pressure above 140 over 90 is typically considered to be low level hypertension and cholesterol levels above 200 will usually affect your insurance rate. All carriers have their own underwriting guidelines for blood pressure and cholesterol so it’s best to speak with an experienced agent, who’ll be able to guide you toward the carrier who has the most favorable rates for your blood pressure and cholesterol levels.

Health History. This is a big area that can encompass many things. Life insurance carriers want to know about health problems you’ve had, if any. This can include a heart attack, cancer, diabetes, stroke, or just about anything else that you’ve been to a doctor for. This also includes HIV and AIDS. Many people worry about telling their agent about their health issues, but it is always in your best interest to be upfront. Life insurance carriers will check your medical records and prescription history so it is highly likely that they will find out anyway, and you’ll be denied for life insurance if you aren’t upfront. When you disclose everything to your agent, you allow him or her to help you find the best company for your coverage. For example, if you have diabetes, many companies will deny you outright. But there are carriers who will give you as high as a standard rating, depending on your A1C level.

Family Health History. Because health problems often run in the family, life insurance carriers will often ask if your parents or siblings have had heart disease or cancer.

Driving History. Speeding tickets and a DUI can also affect your life insurance rate. Each carrier has their own guideline for what is acceptable.

Occupation and Hobbies. Life insurance carriers view certain occupations and hobbies as high risk, which means you’ll likely pay a higher life insurance premium. Some examples are pilots, rock climbers, sky divers, and scuba divers.

Because there are so many factors that affect your life insurance premium, the only way to get an accurate quote is to speak to an experienced agent. Tell them about any issues you might have and they should be able to guide you in the right direction. Get a free quote today.

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