How Your Term Life Insurance Premiums Are Set

How Your Term Life Insurance Premiums Are Set

Understanding Your Term Life Insurance Premiums

There are a lot of things in life that you have to buy without understanding why they cost what they do. Life insurance should not be one of them. There is a straightforward process used to set your term life insurance premiums, and as the person paying those premiums you deserve to know how it work.

So you can best understand the premiums of your term life insurance policy, here is a quick look at how they are set.

When you apply for your term life insurance policy, you are put into a certain classification. The classification indicates your level of risk, and the riskier you are, the more your coverage will cost.

What factors affect your classification? Your age, height, weight, and family history are all considered. Additionally, health factors like how frequently you use tobacco, your cholesterol and blood pressure levels, and if you have a condition like diabetes, heart disease, or cancer are taken into account.

Health is not the only thing that determines your classification, though. If you engage in risky activities, you can expect your premiums to be higher. What will your insurer consider risky? A bad driving record, regular foreign travel, felony criminal activity, military service, and working in a hazardous occupation can all shift your classification.

Gender will not affect your classification but it does affect your premiums. Women pay less for coverage due to their longer life expectancies.

Do you want to talk to an expert who can help you understand which pricing factors you can control in order to get the most affordable coverage? For the best policy at the best price, contact Tri-Star Insurance Professionals. Serving Plano and the surrounding Texas area, we are here to help you get term life insurance and actually understand it.