It is important for everyone to have a term life insurance. This is because of life unpredictability. It will protect your family financially in the event of your untimely death. Term life insurance is affordable and easy. However, how much term life insurance costs you pay, depends on a number of factors. Keep reading this article to understand more about term life insurance.
What is Term Life Insurance?
Also known as term assurance. It is an insurance cover that provides a fixed rate payment for a certain period of time. It is a contract between you and the insurance company, whereby the insurance company provides financial aid to your loved ones in case something happens to you within that period.
Factors that Determine the Premium Rates for Your Term Life Insurance
The following are factors to be considered when taking a term life assurance:
- Age– This is the major determining factor when calculating how much term life insurance costs you will pay. If you are older, your premiums will be higher. This is why you should get a term life insurance as soon as you can.
- Health– Your health plays a major role in determining the amount of premiums you will pay.Serious life threatening illnesses such as cancer or heart conditions might lead to insurance denial by some insurers. The insurer will take into consideration your present and past medical history and your family medical history. Also, the insurer will evaluate your lifestyle in calculating your term life insurance premiums.
- Gender-It has presumed that women live five years more than men. Therefore, the premiums imposed on women are lesser compared to that of men. Most insurers think that insuring women is less risky than insuring men.
- Occupation-Your occupation plays a vital role in determining how much term insurance costs you should pay to the insurer. Occupations such as pilots, fishermen, truck drivers, and roofer or construction workers among others, are considered to be high-risk jobs by the insurers. This will cause you to pay a higher amount of premiums.
- Sports, Hobbies and Travels-Higher premium rates will be imposed on people who are highly adventurous or take part in extreme sporting activities with higher rates of injuries and deaths. Also, for those who like travelling in dangerous areas are likely to pay a higher premium rate.
Tips for Finding the Best Term Life Insurance
- Pay your Premiums Annually-Most companies offer discounts to clients who pay their premiums in bulk.
- Compare the Terms and Rates from Different Insurers-Different companies have different rates and terms. Before settling for a particular company, first research about other companies. Have at least three different companies to compare. Each insurance is striving to offer the best to their clients. Find an insurance policy that is affordable and favorable to you.
- Strive to Stay Healthy-A healthier you will pay lesser amount of premiums compared to an unhealthy person. Also, try to do away with bad and unhealthy lifestyle, such as smoking, excessive alcohol consumption and lack of exercise.
These are the major factors that influence how much term life insurance costs you are going to pay. It is important to note, the best and most affordable rates are offered to younger and healthy people. So, get yours immediately. Make sure that the insurer has accurate information about you to avoid being kicked out of your plan.