Are you in the market for life insurance? Have you heard the horror stories regarding the cost? You will never know what a policy will cost until you request and compare a few quotes. Unfortunately, there may be some factors working against you.
Here are three primary causes of higher life insurance premiums:
1. You are a smoker. Hands down, this is the number one reason your premium will go through the roof. If you use tobacco in any way, shape, or form, you can expect every life insurance company to charge you a higher premium.
Consider this point shared by CNN Money:
“Smokers pay more than three times as much as non-smokers for the same policy.”
2. You are a man. This may not sound fair, but it is 100 percent true. Men typically pay higher premiums than women. There is nothing you can do about this outside of comparing multiple companies and policies to find the best deal.
3. Age. Life insurance companies look at it this way: the older you are, the closer you are to passing on. This may not be something you want to think about, but it is the logic used by life insurance providers.
Shop for life insurance when you are young and healthy. This allows you to access a more competitive premium.
You can absolutely control whether or not you smoke. You have no control over whether you are a man or a woman. And when it comes to your age, you do have the option to purchase when you are young.
Final tip: regardless of your circumstances, there may be a life insurance policy that gives you the coverage you want at a price you can afford. You simply have to search around until you find what you are looking for.