Life insurance rates
Life insurance at the present time is very affordable. Competition in the life insurance market together with the cost savings that life companies are making by operating on the Internet has depressed insurance rates, bringing them down to historic low levels. For a healthy non-smoker in their 20s, life insurance rates can in fact be as cheap as 5 per month! In some countries life insurance is even bundled into your pension plan. However, there are many factors that influence the final outcome of the life insurance rates for any one individual. Everything from hereditary diseases to diet will figure and, depending upon the answers that we give to the insurance company, will see our life insurance rates climb higher or drop lower than the average rates for our age. So, just what factors will affect the insurance rates that a life company will quote for life insurance, here is a summary of the most important elements to consider:
Age - The younger you are the lower your life insurance rates; the older you are the higher your insurance rates. Young people are seen overall as less of a risk to the life insurance company than older people. This is because the life company simply anticipates that young people with live longer than older people over a finite time from the current date forward. As a result, young people will contribute a higher number of monthly insurance payments before they die than will older people over the same timescale. If you're in your 40s or 50s and lead a very active and healthy lifestyle this age-bias may seem a little unfair. However, given that a 25 year-old may clock up more than fifty years of monthly repayments to reach the age of 75, you on the other hand would only complete twenty-five to thirty-five years worth of repayments to reach the same age. When factored in with the increasing likelihood of death the further we get to our life expectancy limit - so heightening the risk that life companies take on paying out - it is quite easy to see why life insurance rates are bumped up to compensate as we get older.
Smoking - Non-smokers have lower life insurance policy rates than the smokers. In fact, should a smoker quit and then take out life insurance they could save as much as 50% on their insurance rates. If you are thinking of quitting though it is important to check your life insurance policy, as some insurers will not reduce the rates if you quit during the life of the policy, forcing you to change insurance company if you want to benefit from non-smoker rates. Pre-existing Health Conditions - Hereditary diseases, especially those that run through both sides of the family, may have a significant impact on rates quoted for life insurance. Also, if you are required to attend a medical and are found to be less healthy than the 'average' for your age, then insurance rates are likely to be more expensive.
Everyone is a bargain-hunter! Everyone hopes to find the best possible prices for all of the goods and services we provide. People search out sales and special deals when making purchases and no one wants to spend more for anything than they absolutely must. As such, it comes as no surprise that people are constantly looking for the best rates on life insurance.
Here are three tips for securing the best rates on life insurance :
Buy Early
Those who purchase life insurance at a younger age will always find their premiums lower than those of individuals who waited longer before purchasing life insurance. The very nature of life insurance often leads younger people away from considering a purchase. "Why," they may think, "at a young age should I be concerned about life insurance when the odds say I am likely to live many more years ?" The feeling of invincibility associated with youth and the statistical reality that relatively healthy younger people are not likely to die makes it easy to put off purchasing life insurance. However, by purchasing life insurance at a younger age, one can secure very low rates.
In the end analysis, these low rates may result in real net savings in the long haul. By locking in the best rates for life insurance early, one can avoid paying potentially costs premiums down the road. What may seem like an unnecessary purchase to some could be a great way to save money several years into the future.
Be Healthy
The best rates on life insurance are reserved for those who live healthy lifestyles. Looking for a great rate on life insurance, s top smoking, reduce your weight and engage in healthy practices. People of any age can often decrease their life insurance premium costs simply by becoming healthier.Not only is superior health a great way to get more out of life and to lengthen one's life. It is also a great route to saving a substantial amount of money by making sure one qualifies for the best rates for life insurance.
Be a Shopper
If one is looking for the best price on canned corn in the grocery store, they will examine each of the brands available before making a choice. The same kind of analysis does apply to more complicated product purchases, including life insurance. One can call competing insurance companies or use online tools to look at all the packages available and to determine whether or not they are currently paying the best rate on life insurance.An empowered consumer who is motivated to find a better life insurance rate can often do so simply by shopping the marketplace carefully and comprehensively. This kind of research and consideration can help secure the best rates on life insurance.None of us pay more than we have to for most products. We dedicate ourselves to making wise financial decisions and to realizing cost savings whenever possible. The same mindset we bring to our life in other areas works well for life insurance purchases, too. By buying life insurance at the earliest reasonable opportunity, improving our health, and actively shopping for the right policy, we can all hope to find the best rates on life insurance.
