The Cost of Life Insurance
When you start looking for your first life insurance policy, you’ll probably find out pretty quickly just how greatly prices can vary. There are a lot of variables that go into determining prices, some of which you have no control over. From your age and weight to the type of coverage you buy, it’s difficult to get an accurate estimate of each individual’s costs.
- Probably the biggest and most important factor in determining the cost of a plan is your age. It works the same in almost every case - the older you are, the more expensive your coverage will be. We all have an average life expectancy and you can bet that your provider knows it well. If you’re older the age of 60, a term plan could be very expensive. On the other hand, if you’re under 40, your policy will likely be very affordable.
- Another very important factor in deciding premiums is your physical health. If you have any medical conditions or your family has a history of health problems, you can expect to pay significantly more for protection. Your rates can also be affected by your weight, blood pressure, and body mass index. Obviously, those in better health get better rates.
- The type of life plan you choose also plays a part in the price. Generally, term life coverage is the least expensive type and most popular. Of course, you’re only paying for protection for a certain term or period of time and when that term runs out, you’ll have to renew at a more expensive rate. The other type is whole life, which, like the name implies, is good for your whole life and not just a certain period. It is usually much more expensive, but some of the money you put into it actually goes toward making investments that can make for an enormous amount of money for your beneficiaries.
- Finally, the company or provider you buy from has some say in the prices. That’s why it pays off to shop around and even look online for your contract. You can view dozens of policies online in a short time and even see client or customer reviews. Keep in mind that even though finding a low price on your policy is important, finding the right company for your needs should be the number one priority.