Reduce Insurance Premiums

Meet Julian. He was doing some yoga and contemplating life. That’s when he realized that he wants to secure the future of his family. Julian decided that life insurance was a suitable option for some peace of mind. 

Doing some research, he realized that several factors affect the number of premiums he will have to pay. Stick around till the end of this article to know more about these factors and how you can truly reduce the life insurance quotation. Life insurance is a big investment given that you pay premiums over a very long period. 

Insurance companies tend to generate quotations based on a variety of factors. This means that not everyone would be paying the same premiums even if they are using the same life insurance type and death benefit. Some of these factors are not controlled by the life insurance applicant while others are influenced by the lifestyle of the applicant. Knowing and optimizing some of these factors may bring serious discounts for life insurance applicants.

The factors that affect the premiums include age, gender, smoking, current health condition, medical history, lifestyle, and driving record. Age is the biggest factor. The younger the applicant is the fewer premiums they pay. That’s because young people will make payments for many years to come before cashing out on their life insurance. The next factor is gender. 

The fact is that women, on average, live longer than men. And since their life expectancy is long they will be paying premiums for a longer period. Which makes women pay less life insurance premiums than men. Smoking is a huge risk to your health and your life insurance premiums. Smokers tend to pay around double the premiums when compared to non-smokers. 

It’s not an easy thing to do but getting rid of this habit will reduce your premiums. Your current health condition also influences the premium rates of life insurance. Most insurance companies require a medical exam to record key metrics related to your health. They check your height, weight, blood pressure, cholesterol, and other health factors that affect life expectancy. 

Some companies provide life insurance without a medical exam. Those quotations are relatively more expensive to account for this risk. Now let’s think about your lifestyle. Think about your favorite activity or hobby. If it’s a high-risk activity such as mountain climbing or bungee jumping, then you can expect to pay more for premiums. What you do for a living also affects the premiums. Dangerous professions such as being a logging worker will increase the life insurance quotes you receive. 

Finally, your driving record is a big determinant of how much premiums you’ll pay. Insurance companies typically look into the last 5 years of your driving record and review your application accordingly. So if you have a good driving record, you will get a good quotation for life insurance. 

You clearly can control some of these factors to increase the likelihood of getting discounted life insurance premiums.