Calculate Life Insurance Quotes: 4 Main Factors Used
Calculating Life Insurance Cost
Insurers calculate life insurance quotes based on a mortality rate, which is a life expectancy estimate. These are 4 main factors insurance companies use to determine your life insurance premium:
- 1.) Age
- 2.) Gender
3.) Nicotine use
4.) Overall health
Age
Age is a main factor insurance companies use to determine your life insurance premium. The younger you are, the greater the chances that your life expectancy will be longer.
Gender
Gender is a main factor used to determine your life insurance premium because life expectancy statistics vary between men and women.
Nicotine Use
Nicotine use increases the chances of many medical problems which increase the likelihood of death. This is why insurance premiums for smokers is higher. If you do smoke, do make sure to let your insurer know – otherwise they may refuse to pay your death benefits.
Overall Health
Your overall health including your personal medical background, current health condition, and your family’s healthy history is a main factor in determing your life insurance premium.
