• Family meeting with an agent going over important information

Family meeting with an agent going over important informationLife insurance is an important financial tool that provides a safety net for you and your loved ones, protecting what matters most—your life. It offers financial protection and peace of mind by ensuring that your family is taken care of even after the passing of a loved one. However, when it comes to life insurance, we know that finding the right Texas life insurance program can get confusing—and even a bit overwhelming at times. That is why understanding the factors that affect your premium can help. Here are six key factors that can impact your life insurance premium:

1. Age and Health

Your age and health are two primary factors that insurers consider when determining your premium. Generally, younger individuals who are in good health are likely to receive lower premiums. This is because they are considered to have a longer life expectancy and a lower risk of filing a claim. On the other hand, older individuals or those with pre-existing health conditions may have higher premiums due to the increased risk associated with insuring them.

2. Type of Policy

The type of life insurance policy you choose will also influence your premium. There are several options available, including term life insurance and whole life insurance. Term life insurance provides coverage for a specific period, typically 10, 20, or 30 years, while whole life insurance offers coverage for your entire life. Term life insurance premiums are generally lower compared to whole life insurance premiums, making it an attractive option for those seeking affordable coverage.

3. Coverage Amount

The amount of coverage you require plays a significant role in determining your life insurance premium. Higher coverage amounts will result in higher premiums since the insurer assumes a greater financial risk. Consider your family’s financial needs, including outstanding debts, mortgages, and future expenses, to determine an appropriate coverage amount that balances affordability and adequate protection.

4. Lifestyle Choices

Insurers assess factors such as tobacco or alcohol use, occupation, and participation in hazardous activities. Smoking or using tobacco products typically leads to higher premiums due to the increased health risks associated with these habits. Additionally, individuals engaged in high-risk occupations or extreme sports may also face higher premiums since their lifestyles involve greater potential dangers.

5. Medical History

Your medical history and any pre-existing conditions can significantly impact your life insurance premium. Insurers may request access to your medical records or conduct a medical examination to evaluate your health. Conditions such as heart disease, diabetes, or cancer can result in higher premiums since they increase the likelihood of an early claim. However, it is important to note that different insurers may have varying underwriting guidelines so comparing quotes is essential. Contact us today for a free quote on either whole life or term life insurance.

6. Supplemental Life Insurance

If you already have a group life insurance policy through your employer, you may consider supplemental life insurance to enhance your coverage. Supplemental life insurance provides an additional layer of financial protection beyond the basic employer-provided coverage. However, the cost of supplemental insurance will be an additional factor to consider when calculating your premium.

When seeking life insurance, it is crucial to compare premiums and coverage options. By understanding these factors, you can make informed decisions. With the help of our team of agents we can help you secure affordable and adequate coverage for yourself and your loved ones.

Contact our experienced team of agents at Arthur Blake Insurance to make sure you’re getting the best life insurance and to guide you through the process. Our agents in Plano, TX can help you receive the best premium coverage. Contact our agency here or call (972) 954-6383 to speak with a local agent today.