Life insurance protects you and your family in the event of a death. It is important to make sure that your family will not suffer financially as a result of an unforeseen incident. If you do not currently have life insurance or wish to have more life insurance, you will first need to get a quote for coverage.
Your life insurance policy premium can vary depending on risk, which is impacted by the following:
- Age - The older you are, the higher your premium will be.
- Gender - Men typically will be given higher quotes than women for life insurance.
- Height and weight - Being overweight, obese or underweight can negatively impact your life insurance premium. The healthier you are, the lower risk for the insurance company and, therefore, the lower your premium.
- Smoking and drinking habits - Similar to height and weight, smokers and heavy drinkers will have higher premiums as the risk is higher.
- Past health - Having a clean bill of health, with no family history of heart disease or other hereditary problems will lower your premiums.
- Risky activity habits, including skydiving and bungee jumping. If you frequently engage in dangerous or risky activities, your life insurance quotes will be higher.
The other big question that is asked is, "How much life insurance do I need?" While this is something that varies from person to person, the easiest calculation is to take the number of years until retirement and multiply that by the average annual salary you expect to bring in until retirement. This will allow you to determine how much money you will be contributing to your household until retirement, should the unforeseen happen. The amount of coverage you desire should be discussed when you are obtaining your quote. The higher the coverage amount, the higher your premium will be.
While there are multiple types of life insurance, including Whole Life, Term Life, Universal Life and Variable Life the application process is the same. The differing types of life insurance impact the terms of the policy, including the policy period, premium, amount due at the end of the policy period and benefits due at the time of death.
There are three common ways to apply for a life insurance quote.
- In person. Many local insurance agencies will offer a quote for life insurance. Simply make an appointment or drop in to your local agency and let them know what you are looking for in terms of a life insurance policy.
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Author: Brad Halvorsen