What Affects Your Life Insurance Rate?

Shopping for life insurance can be a complicated process. There are many options and extras to look through when researching policy options. The plethora of insurance companies offering life insurance products can make purchasing coverage even more complicated. Of course, you want the most for your money without overpaying for a policy. To find the policy that is best for you, you need to understand what affects your life insurance rates. Consider the following factors your insurance company uses to determine your insurance rate. 


You Pay More When You Smoke 


Just as you are choosing which life insurance company you want to work with, the life insurance company is also assessing you as a client. The assessment typically includes examining your medical history. Furthermore, your medical history may include questions about your past and current usage of tobacco products. It is important to remain truthful when answering these questions to avoid problems with your policy later. 


Even if you are not using tobacco products right now, the insurance company will want to know about the last time you used tobacco. Typically, a year with no tobacco use will make you eligible for discounted rates.  


Hazardous Jobs Increase Risks and Premiums 


Another question your insurance company is likely to ask is concerning the type of work you do. If you work in hazardous conditions, the insurance company may see you as a risk because the mortality rate will be higher for those who have dangerous jobs. Prepare to answer questions about the type of work you do, so the insurance company can thoroughly assess your position. 


Being Healthy Saves You Money 


If you have a chronic disease, your life insurance premium will likely cost more than a person who doesn’t have a chronic disease. Developing any of these conditions reduces your life expectancy, which increases the chances of payout for your insurance company. Fortunately, you can prevent all of these diseases and conditions and improve the rate you pay for health insurance. 


The best way to keep your rates at their lowest is by living a healthy lifestyle. Your insurance company will factor in what you are doing to stay healthy based on your application for life insurance.