Getting life insurance often takes time, care and consideration. There are numerous policies on the market, and you of course want to choose the one that is best for you, both in terms of coverage and price. Still, when it comes to offering you a price quote on your plan, your life insurer will need to gauge exactly how much of a risk you pose to them.
Your risk of dying is a primary part of this risk, and numerous parts of your life will influence that risk. Therefore, your insurer will have a lot of specific questions about your lifestyle at the time you begin the enrollment process. Just a few of these factors include:
- Health History/Pre-Existing Conditions
- Current Health
- Tobacco, Dug & Alcohol Use History
- Location of Residence
- Credit Score
Additionally, the type of plan you are interested in could also influence both your eligibility for coverage and how much you pay for it. For example, a term life policy is one that only lasts for a certain number of years, but a whole life plan lasts indefinitely. Therefore, the whole life plan will last until your death, regardless of when that is. Whole life coverage will usually cost you more, overall, as a result.
Depending on the plan you are trying to apply for, the different factors that your insurer will weigh will vary. For example, some people with pre-existing conditions will not qualify for certain plans. However, they are still likely to be eligible for other plans. Though these plans might provide more limited benefits, they are by no means inferior coverage, while they still allow individuals to skip a medical exam that they might not be able to pass otherwise.
Additionally, even for those who are healthy, their habits or occupation could put them at a high risk of death. A smoker, for example, might have to pay a much higher premium than a nonsmoker. Or, perhaps someone who is a police officer will face higher occupational risks than a CPA, lawyer or software developer. The officer, therefore, might pay a higher premium for their coverage overall.
A general recommendation for getting affordable life insurance is to buy early, usually before the age of 30. The younger you are when you get coverage, the lower your risk of death (regardless of any pre-existing conditions) will be to the insurer. As a result, your insurer will be more likely to approve a policy of your choice at a more affordable rate.