You’ve probably heard that life insurance is an important asset when it comes to protecting your family’s financial future. But how much do you understand about how life insurance premiums are calculated? The price you pay is largely determined by the risk you present to your insurance provider.
Let’s look at it from the point of view of the insurer. A person who lives a long life can continue making premium payments for many years. Insurance providers generally consider healthy, fit individuals to be a low risk to insure. However, individuals who are obese and/or have a poor medical history are more likely to fall ill with chronic or other life-threatening illnesses; therefore, they present more of a risk since it’s less likely that they’ll be able to make payments for as long as their healthy counterparts.
This may sound grim, but insurance providers have a business to run. So, the risk you present based on your health and fitness will go into determining how much you will pay in premiums. Along with your health, insurers may also consider your age, BMI (body mass index), driving record, occupation, habits, hobbies and the medical history of your whole family.
When applying for coverage, you may have to submit medical records and/or undergo a medical exam before your policy can be written. Factors like your cholesterol are also indicators of your health and fitness. After all, some people are lucky enough to have quick metabolisms and may appear to be fit even if they eat nothing but junk. Your internal health is just as important as how you appear on the outside.
Let’s now shift back to your point of view. You want the protection of life insurance, but you don’t want to spend a fortune on it. A great way to get the best price on life insurance is to apply for it when you’re at the peak of health and fitness. Though it may be hard to pinpoint exactly, it’s fairly safe to say that you’ll be healthier and more fit in your 20s or 30s than you will be in your 50s or 60s. So, don’t wait to get coverage. Talk to your independent insurance agent today and learn more about how your health and fitness contributes to your life insurance rates.
Are you covered? Call Morehead Agency at 816-525-6159 for more information on Lee' Summit life insurance.