Call or Text Us 303-957-1742 ☰ ˟
Logo
Quote Now
Call or Text Us 303-957-1742
  • Home
  • Current Clients
  • Get a Quote
    • Get The Most Accurate Quote
    • Auto Insurance Quote
    • Business & Commercial Insurance QuoteImage of right arrow
      • Commercial Auto Insurance Quote
      • General Liability Quote Form
      • Business Owners (BOP) Quote Form
      • Workers Compensation Quote
    • High Value Insurance Quote
    • Home Insurance Quote
    • Recreational Vehicle Insurance Quote
  • Click to Buy
    • Compare Your Current Home or Auto
    • No Current Auto Insurance
  • Blog
  • Resources
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • Location Map
    • Meet Our Team
    • Partners
    • Customer Testimonials
    • Community Involvement
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Auto Icon

Auto

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home Icon

Home

We browse through a wide variety of coverages and find the right one for you.

Learn More
Business Icon

Business

We browse through a wide variety of coverages and find the right one for you.

Learn More
High End Insurance Icon

High End Insurance Packages

We shop a variety of high end insurance carriers to find the best coverage for you.

Learn More
Life Icon

Life

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home > Blog > Factors Influencing Your Life Insurance Premiums
WEDNESDAY, FEBRUARY 16, 2022

Factors Influencing Your Life Insurance Premiums

Life insurance policies come at a cost, and you must continue to pay for yours in order to maintain your benefits. However, your individual premium is going to be unique to you, based on numerous factors that influence your risk of dying and triggering a death benefit payout. Let’s take a look at some of these risks, and why they might drive your rates up or down. 

The Policy You Choose Determines Your Rates 
You want your life insurance policy to provide a settlement to your loved ones when you pass away. Because everyone’s financial goals for their policy are different, there are many policy options on the market. Depending on the coverage you select, your premium will vary. 
life insurance spelled out in wood blocks
Life insurance policies generally come as either term policies or whole life policies. Term policies last only a certain number of years, while whole life policies last indefinitely. As a result, the indefinite nature of whole life policies generally make them the more expensive. After all, a term policy might expire long before you will die, while your whole life plan will last the rest of your life. 

Furthermore, the death benefit of your policy will impact your rates. For example, some people might find a $100,000 settlement more to their liking. Others will need upwards of $500,000. The latter will be more expensive. If you choose more coverage, after all, you’ll have to pay more. 

Other Factors Influencing Your Rates
 
Along with the terms of your policy, other risk factors can influence your premiums. These factors are those that might indicate what your risk of death is, and if it is a higher one, then you might pay more for coverage. 

  • Age: Because age links to the risk of death, your insurer will consider it. Older individuals almost always pay more for their coverage. To lower this risk, consider getting life insurance while you still are young. 

  • Medical history: Those with complicated health often have relatively higher death risks. Thus, they might not be able to buy some policies. They might also pay more for coverage. However, health is not always a limiting factor in your qualifications for coverage. 

  • Smoking history: Smoking and tobacco use create significant health risks. You will likely pay more for coverage if you have this habit. 

  • Lifestyle: Some insurers will ask about risks in your personal life. These might include hazards arising through your hobbies, or from your work. For example, someone who works on an oil rig might face higher safety risks and higher insurance costs. 

  • Gender: Men and women face different lifestyle risks. Therefore, most life insurers will consider your gender when setting rates.

 

The most important thing to remember is that your life insurance risk profile is different from anyone else’s. Let your agent help you both analyze your personal risks and direct you towards the policy that is going to give you the best return on your investment. 

Posted 3:46 PM

Tags: life insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021

  • life insurance(13)
  • auto insurance(11)
  • umbrella insurance(10)
  • home insurance(10)
  • insurance(8)
  • coverage(6)
  • auto(4)
  • commercial(3)
  • homeowners(2)
  • car(2)
  • policy(2)
  • commercial umbrella insurance(2)
  • towing(1)
  • life(1)
  • vehicle(1)
  • umbrella coverage(1)
  • premiums(1)
  • medical(1)
  • rates(1)
  • inspections(1)
  • umbrella(1)
  • rv insurance(1)
  • credit(1)
  • employee(1)
  • gap insurance(1)
  • benefits(1)
  • personal(1)
  • costs(1)
  • personal umbrella insurance(1)
  • exams(1)
  • vehicles(1)
  • rental(1)
  • home(1)
  • score(1)

View Mobile Version

Contact Us Today!
Call - 303-957-1742
Text - 303-529-9132

Social Social Social

Resources

  • Products
  • Customer Service
  • Payment Options
  • Report a Claim
  • About Us
  • Refer A Friend
  • Our Carriers
  • Blog
  • Contact Us

Contact Us

6060 S Broadway
Littleton, CO 80121

P: 303-957-1742 | Text: 303-529-9132 | Fx: 303-957-1743 | inquiries@mcdonaldag.com
© Copyright. All rights reserved. | Powered by Insurance Website Builder