Rising Life Insurance Premiums
May 22, 2008
Are your life insurance premiums getting more and more expensive? There are some factors, which may be attributed to the costs of life insurance premiums. In many cases, you can expect to have lower premiums if you live a low risk lifestyle and are in reasonably decent health. A change in either one of these conditions can cause your insurance premiums to go up. You should know that there are certain factors that need to be taken into account when considering life insurance and you need to know how they affect your insurance premiums and whether you can do anything to control these effects.
The typical cost of term life insurance has actually been going down over the last ten years according to several independent reports. These figures are for both men and women non-smokers. The lower costs are also said to be a consequence of longer life spans for both men and women in this same ten year timeframe.
Life insurance companies follow certain criteria to determine the amount of the premiums they can charge their customers. Their attention is focused on the level of risk associated with the lifestyle of their customers. When an insurance company evaluates your relative health and lifestyle, they will be looking for reasons to assume that you will die sooner or within the limits of your policy so they can charge you more for coverage. Within the internal deliberations of the insurance company, a prospective customer’s age, health, and lifestyle can all be potential causes for higher insurance premiums.
Women have a longer life expectancy than men do, so they will pay a smaller premium for life insurance coverage. Premiums do increase as a person gets older, so the sooner you obtain coverage the less you will pay in coverage costs.
Conditions like high blood pressure, diabetes, obesity, and high cholesterol can influence how much you will pay on life insurance premiums. Smoking and obesity are both conditions that cause an increase in insurance coverage. Obese people can expect to pay about 50% more for life insurance. A 35 year old male smoker can expect to pay around 26 to 30 dollars a month for coverage. All of the above conditions can translate into a higher level of risk to the insurance company because they reduce life expectancy.
Your own health and your family’s medical history can both help determine the cost of premiums. If there is a condition such as diabetes, heart disease, or cancer, this can cause an increase in premium costs; it does not matter whether it is in your family or if you are the one who has it.
Premiums will be higher for someone who has a risky occupation, such as a window washer on high-rise buildings, or if you engage in risky hobbies like motorcycle races or mountain climbing.
If your lifestyle and occupation are low-risk, your health will be the most important factor that determines how much you pay. It is extremely important to be honest about your health and lifestyle when applying for insurance. False information will only invalidate your policy.
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