Life Insurance Rates
The rate that you pay for your life insurance is commonly referred to as the insurance premium.
The life insurance rates you pay are based on the risk that you pose to the insurance company. If the insurance company believes that you are more likely to die prematurely, the rate you pay will be higher.
Factors taken into account when calculating your life insurance rates include your age, gender, occupation, smoking status, health status and a number of other factors.
We will now go into each of these areas in more detail.
Age
One of the main factors affecting life insurance rates is your age.
Generally your life insurance will become more expensive as you get older, reflecting the fact that as you age you become more susceptible to major illness and events such as heart attack and stroke.
Exceptions to the rule are young men. Up until their mid-twenties, young men will actually pay lower rates each year as their likelihood of being killed in an accident reduces.
Occupation
Although life insurance covers you at all times, not just when at work, the type of work you do still has an impact on the life insurance rates you pay. Riskier occupations will attract higher rates, while less risky occupations will attract lower rates.
In some cases your occupation may rule you out completely from obtaining life insurance, or the life insurance company may place exclusions on your policy for certain aspects of your work.
Smoking Status
Whether or not you are a smoker will have a major impact on your life insurance rate. Even if you have recently given up smoking, you will need to have refrained from smoking for at least twelve months before the insurer will offer non-smoker rates.
Gender
Your gender will impact on your life insurance rates for a number of reasons. The fact that women have a longer life expectancy is one reason, and another example is the increased risk of accidental death in young males under 25.
Health
Your current state of heath as well as your past health history can have an effect on the insurance premiums you pay. If you have suffered from an illness that has the potential to reoccur and could contribute to your death, the insurance company will charge higher rates, or may even refuse cover completely.
Family History
Your family’s health history is another area the insurance company will look at when determining your life insurance rates.
If you have a history of multiple family members suffering from the same major illness, the insurer may refuse cover in extreme cases, or increase the premium rates in less extreme cases.
Pastimes
Some pastimes and activities seen as dangerous or hazardous can push your life insurance rates up, or potentially result in an exclusion if the activity is seen as especially dangerous.
Pastimes that fall into the hazardous category can include hand gliding, deep sea diving, parachuting, motor racing and full contact sports if played professionally or even semi-professional.
Determining your life insurance rates
There are many factors that can affect your life insurance rates, and the easiest way to find out what your rate will be is to request a quote using our easy online quote request.