Term life insurance providers ask a lot of questions when you apply for a policy. How you answer these questions determines your premium and could give you a low-cost term life insurance policy. By following these tips, you could guarantee the best rate on your term life insurance.
Your health may seem relative, but it’s one of the factors that can increase or decrease your term life insurance rates. Maintaining a healthy weight, avoiding tobacco products, and controlling chronic issues are all determinants that providers look at to determine your lifespan. Saving money may be your end goal, but you don’t want to skimp on coverage and leave your family inadequately prepared for your passing.
The best way to reduce your rates is to establish a workout routine to maintain your weight, quit or avoid smoking/chewing, and take medicines for any chronic issues you may have. Some term life insurance companies could also require you to visit a doctor on a regular basis to check symptoms from any issues you may have.
One of the biggest determining factors for term life insurance is your age, and your premium increases as you grow older. Buying term life insurance at a young age gives you more time to pay off your policy, which means you’ll get better rates. Most people get life insurance when they have a loved one that depends on their income. Someone who’s single and in their 20s may not need insurance, but getting a policy at this age increases the likelihood that you’ll get a preferred rate. This doesn’t mean that if you’re 40 or older you won’t get a good quote, but it could be less likely.
High Credit History
It seems like checking an applicant’s credit history is becoming the norm no matter what type of insurance they’re purchasing. A good credit history won’t affect life insurance as much as car insurance, but it is one of the deciding factors for your term life insurance quote. The amount it affects your premium varies from company to company, so it’s a good idea to shop around at several different providers.
Avoid Risky Countries
Travelling is enjoyable, but where you go, and how frequently you visit can affect your term life insurance rate. Some countries are deemed risky, like nations in the Middle East. Other countries that could be considered unsafe are ones that have had significant health crises or issues with political instability. Life insurance companies feel that these problems could affect someone, even if they’re visiting for a short period of time.
Some hobbies are naturally more dangerous than others. Life insurance companies want to give your family adequate finances after you pass, so someone with a hobby that’s hazardous will be charged more. To guarantee a lower rate, try to find fun things that aren’t perilous to your health. Activities like mountain climbing and racing cars increase your term life insurance quotes, while reading or yoga could give you a preferable premium. You can speak with your life insurance company to review your hobbies and get suggestions on ones that won’t increase your monthly rates.