Does Life Insurance Cost Too Much?
Learn What Factors Impact Your Rate

Before signing any contracts, make sure a life insurance policy fits your budget. There’s no use in applying for coverage if you can’t pay the premiums. Fortunately, a policy may not be as expensive as you think, and you can try a few things to score lower rates. So, let’s examine some factors impacting your life insurance cost.


Type of Policy


One of the main factors determining life insurance cost is the type of policy you want to buy. Term insurance offers coverage for a set period, whereas permanent insurance lasts your entire life and includes a cash value component. So, of course, term is less expensive than permanent.




Naturally, your age also significantly affects your life insurance cost because your health declines with time. That’s why it pays to purchase coverage when you’re young and lock in a more favorable rate than one you might receive during your later years.




Women tend to live longer than men, so insurance companies often quote them lower rates.


Health and Family Medical History


Carriers consider your current health and that of your family when assessing the risk of insuring you. Many even require a medical exam during the application process, and they take note of your height, weight, and Body Mass Index. So, obviously, it pays to take care of your body and stay as fit as possible because great health could save money on premiums.


However, you can’t always control your pre-existing conditions. And unfortunately, some may disqualify you from typical life insurance. But don’t panic. You still have coverage options.




The way you live also figures into your life insurance cost. For example, a risky job, such as firefighting or underwater welding, could negatively impact your rates—as can a dangerous hobby, like rock climbing. Insurance companies also want to know about your driving and criminal records and whether you smoke. They may even consider whether you’ve filed bankruptcy in the past few years. All these factors paint a picture of your life and how much risk it involves.


So, if you want to lower your life insurance cost, don’t smoke, drive safely, and avoid risky activities. Stay as healthy as possible.


Your Hibbs agent is happy to answer any questions you may have and how much coverage may cost you. Call now for a quote.