Factors That Determine Life Insurance Premiums

Choosing a life insurance policy can seem a little confusing, but you should always keep one thing in mind: if you don’t need life insurance, then don’t spend your money on it.

Your life insurance will depend on your personal situation, but generally, if you do not have a spouse or children, you probably don’t need life insurance. The same holds true if you don’t make a significant portion of the household income.

If you do have a family who you support by paying the mortgage, recurring bills, or well as sending the kids to college, you should probably seriously consider life insurance coverage to ensure that these financial obligations are met in the event of your death.

Life Insurance Premiums Factors

There are a variety of factors that affect life insurance premiums. They include the following:

  • Age, height, and weight
  • Sex – generally, women live longer than men, though many states require unisex rates
  • Personal and family health history
  • Purpose of the insurance – e.g. estate planning, business or family protection
  • Marital status and number of children
  • Existing insurance and any additional insurance the policyholder intends to purchase
  • Occupation – hazardous jobs can increase risk of death
  • Income
  • Smoking/tobacco or alcohol use
  • Hobbies – hazardous activities, such as racing, hang-gliding, and surfing can increase the risk of death
  • Foreign travel

So what are you waiting for? InsuranceUSA.com is here to help you find the term life insurance policy that best fits you and your personal situation, while still remaining affordable. Get started now and sleep well at night knowing your family and loved ones will be provided for, no matter what happens!