Finding out how much your life insurance might cost is an important calculation, because you want to be sure that you have enough coverage to protect your family in the event that something happens to you. You also want to be sure that you have selected a policy from a quality company at a premium that is competitive. There are many factors that go into determining your life insurance premium, and this article will tell you what’s behind the mirror in that process. Knowing how premiums are calculated can be extremely helpful in assisting you with the quote process to get your life insurance online.
This is the biggest factor by which the life insurance carrier determines your premium. You might want to ask your agent questions about age nearest and age last. If your birthday is coming up, for example, some carriers will assume that you are that next age up, which could bump your premium. If you’re within six months of your most recent birthday, generally you might be able to backdate the policy to “save age”. In most situations, you will be responsible for paying back premium for those other months, too, so run a calculation to see if you’re within the right range to save age on your policy.
As you might expect, the younger you are, the cheaper your policy is going to be. This is because the insurance carrier uses mortality rates to “guess” the chances that you might die at any particular age (exciting job, right?). The younger you are, the less your risk, and that’s why your premiums are cheaper.
You might be surprised by the number of life insurance carriers who have taken a leap forward with regards to how they consider certain health issues. Some carriers are friendlier towards diabetes or family history of cancer, for example. Simply going through a quoting engine will not necessarily connect you with the life insurance company that provides the best value. In some situations, your life insurance risk class can be raised by as much as one or two categories just by choosing the right carrier.
If weight is an issue, you should know that carriers use height and weight tables to initially identify where you might fall. Losing some weight recently, although a great accomplishment, is not likely to convince the carrier that you’ll stay that weight or lose even more. In fact, many carriers want to see whether you’ll be able to maintain that weight for the long term, so you’ll want to be sure that you’ve kept that same weight for at least one year.
Checking off the “smoker” box on your life insurance quote is one way to spike the premium you’re quoted, but carriers view some other tobacco use a bit differently. For example, if you only enjoy a cigar every so often, you might qualify for a nonsmoker rate through Prudential. Smoking status is a lot like your weight- recent changes are not enough to convince a carrier that you’re in it for the long haul. They want to see sustained success. Some carriers want to see that you have been smoke free for at least two years, and others like to think of one year as the marking point. If you’re within several months of hitting a major milestone like being smoke free for two years, consider waiting until you pass that milestone to get your life insurance coverage. It could make a big difference on your bottom line premium payment.
Even if you are classified as a smoker, it’s still possible to receive life insurance at an affordable and competitive rate- you just need to look around. There are some life insurance carriers who award “fit credits” depending on other aspects of your life, like height and weight. If you can meet excellent status in these areas, you may be able to get the best possible rate class for a smoker. Simply put, doing a little research is going to help you in the process of identifying the right carrier for you.
Let’s put it this way: if you enjoy skydiving as a regular hobby, it might be a challenge to ensure you. It’s not that life insurance companies bar all activities that might be classified as “high risk”- it depends on the activity. If you love to fly airplanes in your free time or go deep sea diving on a regular basis, however, you could be looking at a costly rate class or an outright denial. As mentioned earlier, this is totally dependent on the carrier and the activity at hand. Your best bet is to work with your life insurance expert to select an appropriate company that is likely to give you the best possible rate class. In the meantime, be safe! We’re hoping you never actually need to cash in on your life insurance policy.
Amount of Coverage
Remember that you can also work backwards to arrive at your final premium by thinking about what your desired budget might allow you to purchase each month. Once you see this number, however, conduct an evaluation to help you determine how much this will assist your beneficiaries and make alterations from there. You might be able to save some money if you pay on an annual basis, too. Play around with the numbers to determine that you have selected a policy with the comprehensive coverage you need at a price point you are comfortable with. So many families have been saved financially by the existence of a life insurance policy- make sure that your family is protected with the coverage you need.
If you have any questions feel free to call us 888-492-1967 or Get Life Insurance Rates Online with over 60 A-rated life insurance companies.