What factors affect life insurance rates?

The cost of your life insurance premiums will be set by the rate class you fit into. If you are in excellent health, relatively young, and work in a field which is considered safe, your rates will be lower than someone who does not meet these conditions. By understanding the factors which affect your life insurance rate class, you will be able to position yourself for more affordable life insurance premiums.

Your health is one of the most important factors affecting life insurance rates. The idea is that the better your health, the longer you can be expected to live, and that keeps your rates down. To improve your health, quit smoking, join a gym, and stick to a healthy diet. If you have preexisting conditions, some companies may deny life insurance coverage, but even those which underwrite policies for you will charge higher rates.

The younger you are when you purchase life insurance policies, the lower your premiums will be. Since the rates are based on how long you can be expected to live, the cost of life insurance goes up proportionate to your age. If possible buy whole life policies while you are in your 20's and you'll get some of the most affordable life insurance rates available.

Working in a job with a high risk of injury or illness will cause you to pay more for life insurance. This might include jobs with a high risk of injury such as construction jobs, or occupations which require you to work with potentially dangerous chemicals such as you might expect in some factory jobs. Similarly, if you participate in dangerous activities such as skydiving or mountain climbing, you are a much higher insurance risk, and that will affect your rate class.

Other factors that play a part in determining your rate class include the information contained in your CLUE report, your marital status, and other personal demographics such as the crime rate in the area where you live, and how far you commute on a regular basis. In general, anything which has the potential to cause you injury or illness can affect your rate class and plays a part in determining how much you have to pay for the policy.