Life Insurance Rates
Life insurance rates are calculated by highly qualified individuals who are called actuaries. They deal with all the permutations of health, life, occupation, gender, age and other conditions that govern how much a life insurance policy will cost.
All insurance is calculated on the risk of the insured having an accident in the case of car insurance, and how long they will live where life insurance is concerned. Your personal data is converted into mathematical formulae and, these days, probably fed into a computer that comes up with a number at the other end of the computation.
There is one thing that is definitely going to happen to a human being and that is death – getting bills is the other of course. Obviously the younger you are, the cheaper a simple life insurance policy will be. You will pay the whole amount of the policy in equal payments for most of the rest of your life. The older you get, the fewer years you have to spread the cost over, so the higher the premiums will be.
Health is a very important factor in life insurance calculations. If you are a smoker or have a serious disease or illness, your life expectancy is shorter, and consequently the insurance premiums will be higher than those of a healthy smoke-free applicant. Even if you are a smoker or have a long-term illness you can still get life insurance but it will cost considerably more.
With smokers they can quit and benefit from a reduction in premium costs after two years of being smoke-free, that’s how long it is calculated it takes your body to become totally fit and healthy again.
If you have a serious illness, it is good that you are considering life insurance rates, high as they will be – you have prepared yourself for the inevitable and want to leave those you love as much as you possibly can. Funeral expenses are extremely high and if you have incurred debt as many do during a serious illness, your loved ones will have to address most of those costs too.
If you are young, and especially if you have just got married and had your first child, start looking at life insurance rates today – you never know when something untoward is going to happen.