How Your Insurance Rates are Computed

The total cost of your insurance and the amount of premiums that you pay are computed based on a number of factors. Insurance companies consider the total amount of your coverage, overhead expenses, as well as agent’s commission when computing for your life insurance.

The amount of premiums that insurance companies will charge you is based mainly on the amount of risk that they are taking on your life or the likelihood of you dying.  This probability is affected by your age, your health, and your occupation.  Making a thorough assessment of these factors helps underwriters come up with a numeric equivalent of how much risk it will entail to cover your life.  The more risky you are or the more likely you are to die soon will equate to higher premiums or rejection of insurance coverage.

Age and Gender

It has been proven that women have longer life expectancies compared to men, so therefore women generally get a lower life insurance premium rate compared to men.

It is also recommended that you get your life insurance while you are young because life insurance rates are guaranteed to go up once the age of the client increases because they are obviously more likely to get sick or die.  Although it is possible for people in their senior years to find life insurance, it is best to purchase while you are at younger because you will get lower premium rates. If you are in your later years, do not worry. As you can see, there are life insurance options available for people well into their golden years.


Insurance companies prefer clients with a clean bill of health.  Your current health condition and your health history play a major role in the computation of your insurance rates.  At a certain age, insurance companies would require a medical examination and you are also required to provide information on any pre-existing medical conditions.

Clients with pre-existing medical condition either are charged a higher premium because of their medical rating or would have exclusions in the policy which states that no pay out will be given to your beneficiaries if the cause of death is any of your pre-existing conditions.  This exclusion gives patients with pre-existing conditions the option to still get insured with low premium rates.

Lifestyle and Occupation

Your lifestyle and occupation are also factored in when an underwriter computes for your insurance rates.  People with healthy life habits like those who exercise and those who do not smoke are generally given lower premium rates compared to those who don’t.

Insurance companies also charge additional ratings for those who have hazardous or risky occupations like pilots or race car drivers.  If your job presents a risk of death then you might look at higher insurance premium rates.

Understanding the different factors that insurance companies consider in computing your insurance rates will give you a better chance of doing your part in keeping your premiums to a minimum.  If you are planning to take out an insurance policy soon, try to keep yourself healthy and practice better life habits to ensure that you are in the best possible shape when you do get evaluated for your life insurance.

Cheap Life Insurance Quotes

Like most people, you probably think it’s important to make sure loved ones have what they need to handle important financial responsibilities after you’re gone. Life insurance is an easy, convenient way to ensure the right resources are in place. Coverage can help pay a mortgage, settle medical expenses, even resolve outstanding debt. But with the costs of quality coverage skyrocketing, it’s tougher than ever to get the peace of mind you deserve. If you’re looking to supplement an existing life insurance policy or find something more cost effective, here’s what you should know about cheap life insurance quotes.

Cheap Life Insurance Can Be A Smart Decision

Sure, the adage, “You get what you pay for” is certainly true. But with life insurance, there are situations where even an inexpensive policy can be a smart, practical solution. Particularly for folks looking to add to an existing policy, cheap life insurance quotes can help you customize coverage that works best for you. Maybe you’re only looking for a little more protection and you don’t want to purchase more than you need. Inexpensive life insurance makes a lot of sense, as long as you know what you are looking for, and what you are getting.

The More Choices You Have, The Better

The trick to finding the least expensive life insurance quotes is to have a few different options in front of you. Keep in mind, there are several variables that go into determining premiums and the more information you have, the more likely you are to find quotes to fit your budget. While term life insurance is typically the least expensive option, don’t discount whole life insurance as it’s sometimes possible to find cheap life insurance quotes for permanent, lifelong coverage. The point is, keep your options- and your eyes wide open.

Helping You make An Informed Decision

Finding affordable life insurance quotes shouldn’t be complicated. But not every company is the same, and there are significant differences in not only rates, but also coverage.  When you’re unsure where to start, we can help you navigate the world of life insurance by making it easy for you to locate only the best options, so you can make an informed choice.  After all, narrowing down to just a few quality choices will ensure you choose a policy that you can depend on to protect your family when they need it most.

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