7 Unusual Things that Can Impact Your Quoted Life Insurance Rates

7 Unusual Things that Can Impact Your Quoted Life Insurance Rate

There is a definite moment when many of us start thinking about buying life insurance to protect our family and loved ones. It could be after the baby is born, or an appealing insurance ad to align your interests. When this moment comes, the first thing most people do is get a quick online quote for their approximate price. A more detailed assessment follows. Some elements of this assessment are intuitive (age, health status, smoking status, occupation, etc.). However, underwriters also considered some other surprising evaluation criteria. Such as…

Driving History: Yes, your driving history matters, not only about your car insurance premiums but also your life insurance rates. If you’ve had a recent drink-driving accident, your offer is likely to be much higher than someone with a clean driving history. Remember that minor offenses disappear from your driving record after three years (for insurance purposes).

Be happy: Having a history of depression can hijack your life insurance premiums, nearly doubling them. Happy people experience fewer health problems and stress, and therefore represent a lower risk to insurance companies.

Policy Date: The start date of your policy can sometimes be adjusted (also known as looking back), which means that in some cases you can benefit from lower premiums (based on your age; if you turn 50 this week but Backdating the policy to the previous month, then example). You’ll need to pay all your premiums from the retrospective point in time, but you can benefit from lower rates in the future.

Hazardous jobs (e.g. stuntman, bomb squad member) can mean a higher risk to your life, leading to higher insurance premiums. Do you think your job is dangerous?

Payout Frequency: Paying a life insurance policy annually saves the insurance company in administration costs, and they reward you with lower premiums than you pay monthly. However, in this case, you need to plan carefully because if you forget about the annual premium, the high annual fee can create a major hole in your household budget.

Travel (too dangerous destinations): Some destinations are more dangerous than others, and some are very dangerous (war zones, areas with a known history of kidnappings, etc.). Check with an insurance broker or your agent to find out how your plans may affect your insurance coverage. Your policy can be rejected, or you may be able to get a

7 Unusual Things that Can Impact Your Quoted Life Insurance Rates
7 Unusual Things that Can Impact Your Quoted Life Insurance Rates

life insurance policy, but it will explicitly exclude your time abroad. In some cases, the simplified problem of not having a medical life insurance policy is a solution because it doesn’t ask about travel. It’s important to know,

though, that a simplified problem policy is more expensive than a standard policy, with coverage typically limited to between $50,000 and $300,000. You can test this by getting an anonymous simplified question medical-free life insurance quote from one of the many insurance online platforms.

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