WEDNESDAY, JULY 15, 2020
Investing in life insurance is an important financial decision. The right policy can help you protect your family. A policy without the proper terms, though, can limit your benefits. 
Anyone who has dependents should consider the value of this type of insurance. It can help to give your loved ones the financing they need at a difficult time.
Is Life Insurance Too Expensive?
Many consumers mistakenly believe life insurance is very expensive. It does not have to be. Many people will qualify for low-cost policies. Still, the life insurance premium you pay is dependent on various factors. Often, the healthier and younger you are, the more affordable it will be. Therefore, there's often an incentive to invest in a policy sooner rather than later.
Here are some of the most common factors impacting premiums.
The younger you are, the lower your costs often start. This is one of the biggest factors in determining cost. Insurers charge those who are older more.
At a young age, there is more time for your investment to grow. It is best for individuals to take out a policy as soon as possible. Do so with your first job. And, maintain it long term. This helps you keep lower payments throughout your lifetime.
Most life insurers require a medical exam. They will otherwise gather information from medical records. This data helps insurers know how ill you are. To insurers, illness often translates to a higher risk of having to pay a death benefit sooner.
Therefore, individuals who have a history of severe illness may pay more for coverage. Conditions such as diabetes, heart disease and cancer might raise the risk of high prices. Those who have poor lifestyle habits may also pay more. This includes having conditions like high blood pressure or being overweight.
Women often live longer. This means they also pay less in life insurance premiums. Men typically pay a bit more as a result of their age.
Individuals who smoke, or recently smoked, may pay more for life insurance. Smoking reduces your lifespan. Some insurers charge twice as much for life insurance policies for smokers.
If you can do so, quit. Being tobacco-free for a few years can help insurers reduce those costs to you.
Other factors may apply as well. If you have a poor driving record, this can mean you are a higher risk. A family medical history of illness or early death can also play a role. The lifestyle you live can, too. Insurers often provide lower rates to those likely to live long, healthy lives. If you work to make yourself healthy, chances are good you will get lower costs, too.
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