Getting life insurance for the first time can be a strange experience - how do you know what you need to get and how much to pay? There are a lot of questions that insurance companies ask when you apply for life insurance to assess what kind of risk you will pose to the company. Knowing how to navigate these questions will help you get a great deal.
It will help you secure a better deal when you understand what insurers are looking for when they give life insurance, these criteria and tips will help you understand:
Age and Gender
There are two major things that play a big role in your insurance rates; they are your age and your gender. Younger people get better insurance rates because they are further from death and they are healthier usually. You will also get a better rate if you are a woman - women get better rates because women have a longer life expectancy and life longer healthier lives usually.
Apply when you're younger. But remember, you really only need life insurance if someone else is depending on your income, such as a spouse or a child. So if you're single and in your twenties, don't feel like you have to rush to get a policy now just to snag a good rate. You still can get insurers' preferred rates in your thirties and forties.
Smoking
Smoking is one thing that will cause your life insurance rates to go through the roof. If you are 40 and have been smoking since your 20s you will probably pay up to triple what a non-smoker pays. If you want to get your life insurance rates down, one of the best things you can do is to quit smoking. Once you are smoke-free for two or more years your rates will go down.
Health
If you are healthier, then you are going to get a better rate with your life insurance. Having health problems, like high cholesterol or a high probability of heart disease, you will pay a higher health insurance rate. If you have other major health conditions, you will probably pay a higher rate. However, not all health conditions are major, you might pay a little bit of a higher rate if you have minor conditions, but not everything will cause major rate increases.
To know what to expect when you get your life insurance rate it is a good idea to get a physical before you apply. This way, if you have a potential health problem, you can start getting treated and start getting healthy before you get your insurance rate.
Most importantly, don't wait until you have a serious ailment to apply for life insurance. If you do have a health condition, work with a broker who knows which companies would be more likely to insure you at the best rate.
Family History
The last important thing that insurers look at is your family history. This means the insurance company wants to know if anyone in your family has been diagnosed with a serious disease. If they have, this enhances your chances of also contracting a disease and thus your rate will be higher.
The best way to help navigate through complicated family history when shopping for life insurance is to shop around - use online quote tools and check with different insurance companies to see where you might get the best rate.
It will help you secure a better deal when you understand what insurers are looking for when they give life insurance, these criteria and tips will help you understand:
Age and Gender
There are two major things that play a big role in your insurance rates; they are your age and your gender. Younger people get better insurance rates because they are further from death and they are healthier usually. You will also get a better rate if you are a woman - women get better rates because women have a longer life expectancy and life longer healthier lives usually.
Apply when you're younger. But remember, you really only need life insurance if someone else is depending on your income, such as a spouse or a child. So if you're single and in your twenties, don't feel like you have to rush to get a policy now just to snag a good rate. You still can get insurers' preferred rates in your thirties and forties.
Smoking
Smoking is one thing that will cause your life insurance rates to go through the roof. If you are 40 and have been smoking since your 20s you will probably pay up to triple what a non-smoker pays. If you want to get your life insurance rates down, one of the best things you can do is to quit smoking. Once you are smoke-free for two or more years your rates will go down.
Health
If you are healthier, then you are going to get a better rate with your life insurance. Having health problems, like high cholesterol or a high probability of heart disease, you will pay a higher health insurance rate. If you have other major health conditions, you will probably pay a higher rate. However, not all health conditions are major, you might pay a little bit of a higher rate if you have minor conditions, but not everything will cause major rate increases.
To know what to expect when you get your life insurance rate it is a good idea to get a physical before you apply. This way, if you have a potential health problem, you can start getting treated and start getting healthy before you get your insurance rate.
Most importantly, don't wait until you have a serious ailment to apply for life insurance. If you do have a health condition, work with a broker who knows which companies would be more likely to insure you at the best rate.
Family History
The last important thing that insurers look at is your family history. This means the insurance company wants to know if anyone in your family has been diagnosed with a serious disease. If they have, this enhances your chances of also contracting a disease and thus your rate will be higher.
The best way to help navigate through complicated family history when shopping for life insurance is to shop around - use online quote tools and check with different insurance companies to see where you might get the best rate.
About the Author:
About the Author: Ashley Jones is a writer and journalist for the Texas insurance industry. Jones helps consumers navigate the complicated insurance industry through investigating topics such as Texas auto insurance, home insurance and life insurance.