If you’re thinking about taking out life insurance, the first thing that comes to mind is “how much will I be paying?”. Each policy will most likely have a different price and that will also depend on the provider you choose. The amount that you pay to your chosen insurer is called a premium and this can fluctuate depending on a number of factors. For example, over 50s travel insurance might be more than if you were a little bit younger. With this in mind, let’s take a further look into how expensive life insurance really is.
Types Of Policies
When it comes to choosing your life insurance, you’ll need to decide if you want it to be term or whole life insurance. Term life insurance means that if you pass away within an agreed number of years, your insurance will payout. Within this, there are different levels within this type of policy. You can choose from a decreasing term, which means the payout decreases over time, an increasing term that allows the payout to increase over time, and finally, there’s a level term that provides the same amount of payout. However, some people don’t choose this option as it doesn’t cover the cost of inflation so the payout may not be worth as much in the future. Term life insurance can sometimes be renewable as well, so you can keep paying your policy after the original one expires.
The other type of insurance is whole life. This means that your policy pays out to your loved ones as soon as you pass away. These policies can sometimes be the more expensive option compared to termed insurance as your payout is more immediate.
Your Age
Once determining factor on how expensive your annual premium is, is your age. As you grow older and become closer to the average life expectancy, insurance providers will generally increase your premium because there is more risk that the payout will come to fruition. On the other hand, the younger you are, statistically speaking, you should be healthier and won’t require the payout in the near future.
Your Occupation
You may not think of it, but your occupation can actually increase your life insurance premiums. If your job is considered a risk, such as a firefighter, you’re more likely to encounter an occupational hazard so your insurance will be more expensive. Similarly, if you have to travel a lot for work, the provider will assess that you’re more likely to be in an accident, so again your premiums would be higher.
Your Lifestyle
If you enjoy a couple of glasses of wine at the end of the week and the occasional cigarette, you’re actually causing your life insurance premium to potentially increase. This is because regularly drinking alcohol and smoking can lead to health problems in the future which can be fatal. Some life insurers may even take your weight into account, as again they will deem your current health a risk.
Price Comparison
Don’t be afraid to shop around for different providers as you may find better deals and premiums that suit you. Other insurers may offer different types of cover too, so you want to be sure your chosen policy covers everything that you need it to. Companies like Everdays make this process so easy that you can finalize needs and compare prices all from the comfort of your own home.
Overall, when it comes to life insurance, it can be as expensive as you want it to be. Depending on the type and policy that you choose, you could end up paying more or less. There’s not one policy that fits everyone, so not everyone will end up paying the same. Take the above points into consideration and you’ll be on your way to making an informed decision on your life insurance.