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Why you Paying More for Life Insurance Than Someone Else your Age |
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Written by Marty Weishaar
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 Life insurance is not the easiest thing in the world to understand. For the most part people are unaware of all the factors that go into the writing of a life insurance policy and their knowledge stops with the writing of the monthly premium check. There may be a time when you find out that you are paying more for life insurance then someone else the same or very close to your age. This can mean that you believe that you are not getting the best deal when in truth you may be paying the lowest premium possible. What you fail to realize is that every person is different in the eyes of an insurance company and they have specific standards for setting the terms in their policies.
Most often there is a very good reason why you are paying more for life insurance then someone else. This could be one of many reasons like your overall health. The health of an applicant is very important to the life insurance company as they use this to determine certain risk factors when writing the policy. People who are in generally poor health will have a premium for life insurance that is much higher than someone with a good health report. This is because of the fact that the insurance company would stand to lose if the applicant in poor health were to pass on early in the policy life.
Family history also has a lot to do with it. When you are filling out the application for life insurance you will notice that they want to know about the people in your family and the health issues that they have had. This is the way that the life insurance company will determine if you are at risk for one or more of the serious diseases in the world. Having a serious disease in the family history, especially in close relation to you as the applicant, will create a risk factor that could increase the size of the premium that you pay.
The life insurance company will also take into consideration the job that you have. Most of the life insurance companies have a formula they use to determine the risk factors that your occupation creates in relation to whether or not it could cause your death. Now if you work in an office full time you will have a lower risk factor than someone who works for the police department or so fourth. This is one of the more common risk assessments that the life insurance company will do.
Where you live also factors into the size of the premium that you will pay. Certain areas of the world are considered to be more dangerous than others and that can affect the amount of money that you pay each month to the company.
About the Author: Marty Weishaar is a respected insurance industry analyst and advisor who helped create one of the life insurance industry's first ELearning Centers at Efinancial.com. The Efinancial Learning Center contains hundreds of helpful articles and calculators to educate today's insurance shopper and help them make the best decisions for the financial health and future of their family. |
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