Life insurance is a complicated topic and one that many people struggle to understand. There are several different facets and choices, and it can be a lot of pressure to make the right decision for you and your family. Some people think the cost isn’t worth it and put themselves and their families at risk in case they’re suddenly unable to provide.
First, it’s important to understand that there are multiple life insurance policies. Which one you choose affects how much you’ll be paying for insurance. Other factors that may influence your life insurance premiums include:
- Health history
- Current health
When applying for life insurance, you will have a medical exam to evaluate your health. Be aware that life insurance won’t always cover pre-existing conditions. If you do have a pre-existing condition, you may have a more extensive medical screening and potentially higher premiums.
If you’re engaged in more high-risk hobbies, occupations and lifestyle choices, you will likely pay higher premiums. Smoking is a huge influence on life insurance, and you can even cut down your rate if you choose to stop smoking.
Life Insurance Policies
The cost of your life insurance obviously depends on the type of policy you have. There are many different types, but the two most common policies are term life insurance and whole life insurance. Whole life insurance is just as it sounds. It’s a policy that covers you up until your death, at which point it will pay your beneficiaries. A term life insurance policy is a little more complicated, though usually cheaper. This policy only lasts for a certain amount of time. For example, you may have a term life insurance policy that lasts only four years until your child graduates college. A 20-year term life insurance policy for a woman 30 years old costs an average of $133, while the average cost of whole life insurance for a woman the same age is $1,904. Keep in mind that the term length counts, but so does the amount of coverage.
There is no clear-cut right or wrong choice when it comes to which insurance policy you need. It depends on you and your family’s unique needs and situation in life. There are ways to lower your life insurance rates, such as changing your high-risk lifestyle, quit smoking, maintain good health and more.
See Also: Health Insurance Quote, Life Insurance Quote