Insurance companies use a variety of factors to calculate your life insurance premium. At the core, insurers want to insure individuals who are less risky. The more risk factors you bring to the table, the more your premium will cost. What are these risk factors?
- Age: Younger people are generally in better health than middle-aged and elderly people. For this reason, there is less of a risk that a younger individual will die due to health issues. Buying life insurance while young can lock in a lower premium.
- Current health and weight: Many insurers will require you to get a medical exam to determine the current state of your health. Any signs of future complications, such as high blood pressure, may raise your premium. Your weight factors in as well since overweight and obese individuals are likely to develop health problems.
- Family health history: Any hereditary health concerns and illnesses, such as heart disease or breast cancer, can raise your premium because of your higher chance of diagnosis and possible death.
- Occupation: Some jobs are inherently riskier than others, such as law enforcement and construction. If your occupation has a high accidental death rate, your premium will likely be affected.
- Habits: Smoking can lead to a variety of deadly health problems, which makes you riskier to insure. However, depending on your insurer, quitting can qualify you for a lower premium within a year. Similarly, heavy drinking can lead to serious liver problems and can affect your premium as well.
Different types of life insurance policies include term, which covers you for the selected term of the policy, and whole, which includes more extensive coverage for longer periods of time. Your premium will also vary depending on the type of policy you select, often costing more with longer terms and with higher death benefits. Simply put, the more money you put into it, the more money you’ll get out of it. Your independent agent can help you settle on the best option to meet the needs of you and your family.
Protect your loved ones during tough times. Call us at 925-244-1330 for more information on San Francisco life insurance.