3 factors that determine life insurance rate
ByRead this and learn about the 3 factors that determine how much you pay for life insurance and what you can do to lower the price.
1. Depends on what type of insurance you buy.
Term life insurance. This is the least expensive form of insurance. You buy a term life insurance policy which covers a specific length of time, generally five years, 10 years, 15 years, or 20 years and you pay a certain set amount of money for the premiums over that period of time.
Whole life insurance. This is more expensive but after about 15 years if you decide to cash in the policy you will receive all of your premiums back and if you keep the policy for a longer period of time you will receive your premiums plus interest. The cash value of the policy can be used for your retirement, or security if you want to borrow money.
Universal life. With this type of life insurance you decide how much you want to put in over and above the minimum premium. The company will then invest the money usually in bonds and mortgages and you will accumulate a cash value account, which will grow. The cash value can be added to the face value of the policy upon the death of the policy holder.
Variable life. This is a policy with a wider selection of investment products including stock market investments which can offset the cost of premiums in later years or build a cash value in the account. Upon the death of the policy holder the beneficiaries will receive the cash value of the policy plus the death benefit amount.
2. Depends on you.
Your age. The younger you are the cheaper the life insurance is.
Are you a smoker? Premiums are much higher for smokers because they tend to have them more health problems and do not live as long.
How much do you weigh? If you are overweight you’re going to pay more for your life insurance.
Your general health. If your health is good, and your cholesterol is low and your blood pressure is normal and you have no history of cancer or heart attacks the cost for your health insurance will be lower.
Health history of your family. If there is a history of cancer and heart disease in your family the life insurance premium will be higher.
3. The amount of life insurance coverage.
The higher the amount of life insurance that you want the more you will pay for it.
Jimmy says life insurance is very important but if you are young, healthy and do not smoke you will be pleasantly surprised at how inexpensive you can buy insurance. Check with the individual companies.
Whoa Jimmy?
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