Life insurance is arguably one of the most worthwhile expenses when it comes to providing financial protection to those you love. But it is exactly that: an expense. The amount you’ll pay for your life insurance coverage depends on a number of key factors, some of which are within your control while others are not. Here’s a look at the top things that contribute most to your life insurance premiums, and how you can best reduce the cost of coverage while still protecting your family and assets.
There’s no denying that your finances change a bit once you get married. Most folks open joint bank accounts and share health insurance plans. Both contribute to the home and related expenses, and usually begin saving for the future together.
Applying for a new life insurance policy involves answering quite a few personal questions. These questions cover everything from your age and gender to your occupation, hobbies, and even tobacco-use. You’ll often find that many of them are related to your health and medical history.
Your health and medical history can play a significant role in the life insurance-buying process. Not only can your current and past conditions impact your rates, but they can determine whether or not you’ll need to submit to a medical exam, and can even influence some underwriting decisions.
Many companies offer incentives to their employees as part of an employment package. These benefits may include things like healthcare, contributions to retirement savings, gym memberships, and even group life insurance coverage.
Buying a term or whole life insurance policy is an uncomfortable, but incredibly important, way to financially protect your loved ones if something were to happen to you. This coverage can provide temporary or permanent coverage that would replace your lost income, pay off debt, and even fund important future expenses like college tuition.
One of the most imperative aspects of buying life insurance is deciding when in life you need to buy it. There are likely people wondering if coverage is intended for young adults just starting their careers, older adults settling into retirement, or a demographic somewhere in between. The truth is there are several reasons to obtain life insurance no matter your age, which all influence the decision-making behind picking a policy. There’s one fact that always rings true, no matter what type of coverage you’re looking for — the younger you are, the lower your rates will be.