What Determines Whole Life Insurance Rates

Whole life insurance rates will vary, depending on many different factors. The underwriting process will look at all the factors that affect you, and then they will determine exactly what rates you will pay for your policy. The factors which are included in your risk assessment will vary, depending on the company, the policy amount, and other aspects. One of the factors which will affect your whole life insurance rates is your age. The younger you are when you apply for a life insurance policy, the lower the rates will be. This is because whole life is a permanent life insurance type, and it is intended to cover you for life with the same level premium amount each year. Another factor that has a big impact on the amount you pay is whether or not you use tobacco, in any form. Tobacco users have much higher risks of disease, illness, and earlier death, and this translates into higher insurance premiums. The same is true of alcohol and illegal drug use. If you drink alcohol frequently or use street drugs, you are considered a bigger risk and you will be charged more because of this.

One factor which determines your whole life insurance rates is your medical history and current health. If you have had a stroke, a heart attack, been diagnosed with diabetes, or suffer from other medical problems or diseases, then your rates will increase drastically. If you are in great health and have had no previous medical problems than you will see lower rates. Your weight will also play a part in the cost of your life insurance coverage. If you are considered overweight for your height you will pay more for your policy, even if you are in excellent health. This is because obesity can be an indicator of other problems that can lead to death at a younger age. Your exercise and fitness level are also taken into consideration. Another factor with your whole life insurance rates is your occupation. What you do for a living will help determine what you pay for life insurance. If you work at a high risk job, such as a firefighter or a police officer, you will pay more in life insurance premiums.

The medical history of your family also plays a part in the whole life insurance rates you will be charged. If your family has a history of high blood pressure, heart problems, or other medical diseases and illnesses which may be inherited. Your lifestyle and hobbies will also be questioned and examined. If you participate in high risk sports or activities, you have a higher chance of dying young. This will also have an effect on your whole life insurance rates. In the simplest terms, anything that you do or are associated with that increases the risk of death you face will cause the rates you are charged to be higher. Minimizing your risks and living a healthy lifestyle will help keep your life insurance costs lower.