The cost of your life insurance will be based on your age, health, and lifestyle. The premium will also be affected by the amount of money you would like your beneficiaries to receive when you die.
The information that you provide impacts the price of your premium. It is important to be truthful when answering questions about your life.
Younger individuals pay lower premiums. The older you are, the higher the premiums tend to be. This is due to the increase in health risks and higher mortality rates.
Like age, a healthy individual is considered at a lower risk of dying. Your family medical history can also influence the cost of your life insurance. If there are hereditary conditions or illnesses that run in your family, it may affect the premium.
Smoking, excessive alcohol consumption, or engaging in high-risk hobbies may lead to higher premiums.
Occupations that involve physical risks or hazardous environments, may result in higher premiums.
The death benefit amount you choose affects your premiums. Higher coverage amounts typically result in higher premiums.
Term life insurance tend to have lower premiums compared to whole of life insurance.
Term life insurance provides you with coverage for a specific period. For example, 25 years.
Whole of life insurance offers lifelong coverage. Although typically more expensive, it includes a savings component known as cash value.