What Determines Your Life Insurance Rate?

When it comes to your life insurance rate, many people are confused why they are paying a certain amount for their coverage. By looking at the reasons which go into determining your life insurance rate, you will be able to get a better understanding of the different types of rates, and how to get the best life insurance rate. Many different factors go into determining your life insurance rate from your current health to your family history. If you understand what the insurance companies are looking for, then you will be better suited to know what to expect.

Your life insurance rate could vary greatly based upon how you purchase your insurance, and what company you decide upon for your life insurance. This is why at Waterway Financial Group we work with over 50 life insurance carriers to help our clients get the best life insurance rate whether you are healthy, or you have a medical history which could make finding life insurance more challenging. Through some simple research and some questions, you can get a good understanding of what life insurance rate to expect when you apply for coverage. This can help any surprises from popping up at the end of the application process.

Makeup Of A Life Insurance Rate

Before determining what price you will pay you must first determine what goes into determining a life insurance rate. A life insurance rate takes into a variety of factors so the life insurance company can get an overview of the risk you pose of a premature death. This in depth look will lead them to determine what premiums you will pay for your policy. Some of the main factors include:

One of the first things you will notice when you are looking for life insurance quotes is your date of birth. It’s pretty simple, as you age life insurance becomes more expensive since you generally have less time to pay into it.

Tobacco use is a big part of your life insurance rate. The rate a smoker will pay will be different than a non-smoker due to the health related issues, and the decreased life expectancy of a smoker. One of the other important questions we will ask you is if you are on any medications or have had surgery in the last 10 years.

Health history is probably the biggest factor which goes into determining your life insurance rate. Insurance companies will research your medical history and obtain doctors records. Health issues sometimes do cause higher ratings, meaning you could pay slightly higher for your coverage. More serious conditions could also mean a decline for a traditional life insurance policy. We work with many different companies so if you do have a medical condition we may still be able to find you affordable life insurance coverage options.

Other factors such as driving records, criminal records, and risky activities may also be obtained. These are all factors which could decrease your life expectancy which is why the insurance company will look into them. You want to be sure you are disclosing your information up front during the application process, since insurance companies will always do in depth research.

Determining Your Life Insurance Rate

The best way to determine your overall life insurance rate is to speak with an experienced life insurance agent who will be able to give you a more accurate quote. If you are someone who would rather look at quotes online, you can use our online life insurance quoting tool. This will compare over 50 carriers so you can be sure you aren’t overpaying. Please reach out to us with any other additional questions you may have concerning your life insurance rate.

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