7 Reasons Why You May Have To Pay Higher Premium For Life Insurance Than Others

Did you know that age and gender are two factors that can affect your life insurance policy?
Find out the possible reasons that you are paying more than others.

If you are looking to purchase life insurance in Frederick, MD for the first time, you might be confused as to the type of plan and/or to where to buy it. You may also be surprised to find that the insurance premiums are higher than premiums paid by others around you.

But why is that? Here are some reasons why you may be paying a higher premium for life insurance:

The older you are, the more you will have to pay in premiums. Life insurance premiums depend majorly on age. The higher the age, the greater the odds of having a rapid decline in health or sudden death. So if you bought life insurance during your younger ages, you would have had to pay less premium for the same policy duration. 

Numerous studies have shown that women tend to outlive men. According to recent studies, women live 3-7 years longer than men. Thus, many insurance companies may make it a point and have the women pay a lower premium for life insurance than the men. 

Your lifestyle and habits might also be a reason for you paying higher premiums for your life insurance. If you have obesity induced by eating habits or you drink or even smoke cigarettes frequently, your life insurance premium rates may go up. Especially for chain smokers, there is a very solid risk of developing lung or throat cancer and thus many insurance companies take such habits as a red flag for insurance policies.  

Choosing higher payout or longer policy term:
The higher the policy payout is, the more premiums you have to pay. Even with an elongated policy term, the premiums tend to increase drastically. This is because, the longer the term, the more the chances are that your death might happen in the insurance coverage time frame. For example, there’s a better chance of your death during insurance that covers you for the next 20 years than one that only covers you for the next 10 years. 

Personal concerns: 
While buying life insurance, you are required to sign a form with a self-declaration that reveals your hobbies, occupation, and travel information. Using this information, the insurance company tends to assess the extent of safety of a person’s life. If a person’s life is adventurous, they are more likely to meet with unfortunate accidents.

  • Hobbies: If you have adventurous hobbies that increase the risk of an accident or death, you might find yourself paying a higher premium than others around you. For example, mountaineering, motorcycle racing, solo hiking trips, skiing, skydiving, etc, tend to put your life in potential danger. These are serious concerns for your life insurance company. 
  • Occupation: Again, if you work in a dangerous environment, you might have to pay more life insurance premiums as workplace deaths are pretty common. For example, a machine operator at a factory will pay more in premiums than a school teacher as there are more chances of the machine operator’s death due to an accident with the machines, 
  • Traveling to certain countries: If you frequently travel to countries that are on the high-risk list, you may have to pay more premiums as there is a risk to your life. For example, if you travel to a country where a specific disease like typhoid or malaria is higher, your insurance company may require you to pay more. 

Medical concerns: 
Medical concerns are one the biggest factors when issuing a life insurance policy. If you are not fit, physically or mentally, if you have diseases like diabetes, hypertension, issues with vital organs, etc, or if you have a hereditary disease in your family, your life is at more risk than a person with no health issues. Therefore, you have to pay a high premium.

So what should we remember when looking into life insurance?

These factors can influence the premium you pay for insurance; Be it personal, family, or employee benefits insurance. Life insurance is important and there is a possibility of a higher cost to you than others, especially when you cannot control the factors that can increase the premiums; But it is always advisable to have life insurance, no matter what.

Have A Question?