Factors that Increase Life Insurance Costs

By Contractors Insurance Agency Archive, Personal Comments Off on Factors that Increase Life Insurance Costs

why is my life insurance so expensive?

While people recognize the importance of having life insurance in place, many forgo it thinking they cannot afford it.

In actuality, most term life insurance policies are actually quite affordable. However, there are some personal factors that could drive up your life insurance costs.

Here are some of the things that influence your insurance rates.

Tobacco Use

Life insurance experts estimate that a healthy 40-year-old male can secure a 20-year, $500,000 policy for as low at $350 per year.

However, if that same individual admitted to being a smoker, their annual insurance costs would jump up to at least $1,535. This is because tobacco use increases your chances of developing life-threatening conditions and diseases.

If you want to access lower life insurance rates, you would do well to kick this habit.

Weight

Being overweight increases the likelihood of developing type 2 diabetes, hypertension, heart disease, and so on. As these medical conditions can decrease your life expectancy and increase the chances of dying unexpectedly, life insurance companies view overweight people as riskier to insure.

This increased risk will translate into higher insurance rates; so, if you want to save, it’s important to make sure that you are maintaining a healthy weight.

Driving Record

Surprisingly, your driving history can actually affect your life insurance rates. While getting a few parking tickets isn’t going to raise your life insurance premiums, having two or more moving violations in the last three years might affect your ability to access the cheapest life insurance rates.

Insurers know that for every time you get a speeding ticket, there were about 250 other times when you simply didn’t get caught. As reckless drivers are more likely to die in a traffic accident, life insurance providers tend to issue them higher rates.

Do you have additional questions regarding your life insurance?  Then contact the experts at John Scott Insurance.  We are ready to assist you with all your coverage needs today.

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