When it comes to insurance, term life insurance is one of the most simple, cost-effective and straightforward policies available. Basically, this type of insurance policy coverage is in place for a specific length of time. As with any other life insurance policy, term life insurance premiums have to be paid regularly, however these types of policies generally cost less than other plans.
Once you know what factors affect the cost of term life insurance you can work with them to get the most cost-effective plan for your needs. One good practice to follow is to get insurance quotes from reputable companies to find a plan that will best suit your needs. It’s important to note that term life insurance is best for death benefits. Meaning that this type of insurance is means of a financial aid for your family when you die.
Below are some important factors that influence term life insurance costs:
Unhealthy habits cost more money with term life insurance policies. As a result, alcoholics, overweight people, and smokers have to pay higher premiums. This is because insurance companies feel smokers have a higher risk of passing away early because of statistics that show they have a shorter life span than non-smokers. As a result, in order to lower your premiums you want to lower your health risks and quit smoking, get exercising and start eating healthy to improve your overall health.
People who suffer from chronic illnesses like cancer, diabetes, arthritis, hypertension, rheumatism and other life threatening health conditions have difficulty buying term life insurance that is affordable. This factor also plays a role in situations where someone was diagnosed with a disease such as cancer, and were cured.
Family Health History
Many diseases are inherited and are passed down from family member to family member. This means that if you aren’t currently diagnosed with any disease when you buy your term life insurance, there is always the possibility you will be diagnosed later with the disease because it is proven by your family’s health history that you’re exposed to it. In this situation, there isn’t much that can be done, except to maintain a healthy lifestyle.
Hazards associated with your type of employment sometimes cause accidental, or premature death. This includes occupations that deal with dangerous terrains, toxic environments, and the construction industry. If you work in one of these industries, the cost of term life insurance is more expensive because of the risks. As well, policemen, security guards, firefighters, and drivers have to pay higher premiums.
The type of policy chosen is another factor related to cost. Comprehensive term coverage usually costs more. However, they can be customized to lower the costs. Term life insurance for individual’s costs more money compared to group term insurance. Group insurance policies can be bought together with friends or colleagues to reduce the distribution costs per person.
A term life insurance policy is ideal for individuals of any age but are best suited to seniors. This is because they’re simple and cheaper than other policies, but still offer sufficient insurance coverage.
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Factors That Affect Term Life Insurance