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Life Insurance Premiums: What Client Factors Affect Them?

Premiums for life insurance can vary significantly from one person to the next. Did you know that there are some client factors that insurance companies take into account when calculating premiums? Life insurance companies determine premiums by considering several factors that the average person is aware of, such as their age and health. However, other factors like hobbies and occupations can also affect how much you pay for life insurance each year.

Powerhouse Insurance shares some factors that impact your life insurance premium calculations:

1. Age: The younger you are, the lower your life insurance premiums. This is because younger people are generally considered less risky than older people.

2. Gender: Women tend to pay lower life insurance premiums than men. Women have a longer life expectancy than men and pay premiums for a longer time. This means that they pose less risk to the insurance company.

3. Hobbies: If you are a bit of a daredevil and take on high-risk hobbies such as skydiving or rock climbing, you may find that your life insurance premiums are higher than someone with a less risky hobby.

4. Occupation: People with high-risk jobs are more likely to pay higher life insurance premiums because there is an increased chance that they could die while working.

5. Smoking: If you smoke, you will probably have to pay higher life insurance premiums than non-smokers because smoking is associated with many health risks, such as cancer and heart disease.

6. Type of Policy: This is another prominent factor that will impact the premium you pay for life insurance. At Powerhouse Insurance, we offer mortgage protection life insurance, whole life insurance, and term life insurance for 10, 20, or 30 years. Each policy has its considerations that determine the premium.

7. Coverage Amount: The higher the coverage amount, the higher the life insurance premium. This is because the life insurance company will have to pay out more money in the event of your death.

8. Health: Most insurance companies require a medical exam, which will assess your height, weight, blood pressure, heart rate, and cholesterol levels. You are likely to pay a lower life insurance premium if you are in good health.

While some of these factors can impact your life insurance premium calculations, it is crucial to be transparent in your disclosures with your life insurance company. Providing inaccurate or false details is a well-known factor that can void your life insurance coverage. Taking part in hazardous activities, accidental death during “an act of war,” or dying in a high-risk region or country may be other factors that can void your insurance policy.

Be clear on what your life insurance policy covers to know what you are paying for. At Powerhouse Insurance serving the Live Oak, TX area, we believe in being transparent with you so that our life insurance solutions work for you. We offer our clients the best life insurance coverage at affordable rates.

Contact us with your questions or let us call you for a free 15-min consultation by booking online for a time slot. Or you can get your free quote now!