Life insurance is an important step in preparing for the future that we should all start to make at some point. No-one wants to leave behind a debt for their loved ones as well as all the difficulties that come with losing someone. At some point, most people begin a life insurance plan. Of course, there are a lot of things that can influence what kind of plan you end up getting and how much you pay for it. We all know that significant illnesses and health problems play a role in it, but that’s not all. There are some aspects that you might not have considered could affect it. Keep reading and you’ll get an idea of just what can make a huge change to your life insurance options.
There might not initially appear to be much sense in the fact that your past records can play a role in life insurance. However, you have to consider what life insurance calculations really take into account. Providers will look at someone’s life to see the kind of risks they face. It’s a big assumption, but providers look at someone’s risk of dying and calculate from that. Prior records of driving while intoxicated are one of the factors that could affect your insurance. This is due to the fact that those with DWIs are statistically likely to get involved in one other incident. It’s still possible to get life insurance with a DWI, of course, it will just affect the cost.
All aspects of health can have their effects on life insurance. In this, disability is no different. Of course, it all depends on what the disability is. Some will have little to no effect and the buyer will be able to get standard coverage. Depending on how much life threatening risk a disability has, the premiums can get a lot higher. Each life insurance company has a different method by which they calculate risk and their premiums, of course. If you have a disability, it’s better to shop around and see which providers offer the best options for you. Some will have policies that look specifically at the disability and may account for yours within their standard plans. Others consider all disabilities as ‘high risk’, without differentiation.
We all know that personal health can play a huge role in your insurance premiums. Naturally, if you have a pre-existing physical or mental health condition, your risk of death is increased by some measure. But it’s not just your health that can affect it. There are a lot of health risks that are passed hereditarily. You don’t necessarily have to inherit the condition for it to make an impact on your premiums. When you’re budgeting for your life insurance plan, make sure you take your family history into account. Any record of this will have to be disclosed. There are all manners of disease that could make an impact too. Alzheimer’s or dementia, cancer or asthma. Learn which health factors could be considered a risk in your family’s history.
It’s not all health issues such as alcohol overuse or family illness that make an impact. Our lifestyle choices can be just as considerable. A lot of insurance companies look at certain hobbies as ‘high risk’. The more dangerous the hobby, the more likely it is to affect your premiums. Certain sporting hobbies that have a considerable risk of injury may have a certain risk attached to them. Other hobbies that are considered ‘extreme’ will naturally have a much bigger effect. This could include anything from bungee jumping to scuba diving. If you’re considering the future seriously, it may mean dropping certain hobbies. That way you’ll be much abler to pay off your health insurance.
Life insurance is a loan. You’re paying in increments towards an agreed sum. The part of the agreement that matters to providers is that you’re keeping up with their payments. They have agreed to a ‘sum assured’. This means even if you die during the payment term, you get that sum assured. Naturally, making sure you’re paying as long as you can is important to providers. Because of this, they will look at your credit rating and history. They want to make sure that you’re reliable in paying debts and loans. If your history says something different about you, you could very well be paying a lot more. Or you could be rejected entirely if your rating is that bad.
One of the more unexpected factors that come into the decision of what your insurance deal will be like is due to marital status. Being married affects all kinds of insurance from health to auto and, of course, life insurance. Insurance companies may be more inclined to offering you better deals on a joint life insurance agreement. However, this may not necessarily be the best deal for you. For one, the insurance policy will only pay out upon the first person in the marriage to die. So if you are left behind and die after, your life insurance won’t pay out at your demise. The family you have within or outside the marriage plays a role, too. The number of dependents could very well affect how much protection you need.
The exact same as your hobbies, your occupation plays a role in how your premiums are calculated. On one hand, this is due to the nature of the job. There are some very dangerous jobs out there, including logging and mining. It’s only natural that the risk these jobs provide are calculated. However, there’s also the matter of health insurance provided by the employer. If good insurance is provided by your employer, it can affect life insurance. This is because having good healthcare provided removes some of that risk that might otherwise cause premiums to rise.
Life insurance is a vital part of planning for the future, so knowing what can affect it is a huge step in getting the best deal for you. Study yourself carefully. Know your health risks and how your lifestyle might affect the deal you get.