What Affects Your Life Insurance Rates?
Buying life insurance can be confusing, and finding the best rates can seem difficult. Getting the best life insurance rates means knowing what criteria an insurer uses e.g. life insurance rates by age, and how you can improve your chance of getting a good price. Let's talk about what affects your rates.
Your Age and Your Gender
These are the two factors that really affect life insurance rates. Usually a woman will get a lower rate, because a woman has a longer life expectancy. And of course, the younger you are, the less likely you are to die - this will reduce the cost of your insurance premiums. Thus, life insurance rates by age decide a great deal for the person getting insured.
Of course it's a good idea to apply when you're younger, but you don't need to be in a rush. If you don't have dependents that may need money if something should happen to you, you can put off buying insurance for a while - you'll still get the best life insurance rates when you're in your 30s, and even in your 40s. Among many other factors, life insurance rates by age occupy more prominence in the insurance market.
If you smoke, you're going to end up paying a lot more for life insurance than you would if you were a non-smoker. If you smoke, consider quitting for a year before you seek the best life insurance rates and then finally shop for insurance. Some companies may even require you to be smoke-free for five years in order to get a good rate.
Obesity can work against you. If you're overweight, you may end up paying more for insurance. As life insurance rates by age decide its value; so does any health problem.
Your medical history will also affect your rate. If your cholesterol is high, you've got a strike against you. Cancer is, of course, a huge factor that can negatively affect the best life insurance rate chosen by you. But conditions like high blood pressure, diabetes, and asthma may not be considered to be huge factors if you're being treated for the conditions.
If you have health issues, make sure you're taking your medication and controlling the condition. And don't wait until you develop a serious problem before you look for coverage by best life insurance rate medium.
Your Driving Record
Believe it or not, your driving record doesn't just affect your motor vehicle insurance. Here's why - if you're driving dangerously, and breaking traffic laws, you're more likely to die. Does it make sense? Your insurer will consider you to be a higher risk, so if you've had an accident or a DUI in the past number of years, you may find it difficult to get best life insurance rates and might end up paying more for the same policy.
Your job is a key factor in determining the kind of life insurance rate you'll get. If your job is high-risk - say you're a long-haul truck driver, or a lumberjack, or a munitions’ expert - then you're going to end up paying more for insurance than an office worker or a retail clerk. Your best bet if you're in a high risk job is to talk with an insurance broker who can contact numerous carriers on your behalf, and find you one that's willing to insure people who are in risky occupations and off course on best life insurance rates.
If you like to do needlepoint or collect stamps, you're not going to see your life insurance rates jacked up. However, if your idea of a good time is skydiving, or bungee jumping, or stock car racing, then you're not going to get a low rate. You should either scale back your recreational pursuits, or talk to a broker who's experienced in finding insurance for people who like to live life on the edge and offering them best life insurance rates.
Your Credit History
Every time you apply for something, your credit history is looked at. It's no different with life insurance. If you've been bankrupt in the last five years it can work against you. But some brokers have the ability to find you a company that doesn't put a whole lot of weight on credit history. This shows that you can get best life insurance rates even if your credit history is not impressive.
Before You Apply
Shop around. You may be asked about all of the above factors, or not. Life insurance rates by age and gender are most decisive factors that affect you in the long run. Your best bet is to consider several companies, and get several quotes and locate the best life insurance rate. Then make your decision.