If you’re in the market for term life insurance, but figure it’s going to be a pain to find something that works for you and to understand what it means, you’ll be pleasantly surprised. Term life insurance is relatively simple and straightforward, not to mention inexpensive.
“Term life” is an insurance policy for a fixed period of time that you decide upon. You pay premiums, but they are far less expensive than other kinds of life insurance plans. If you make it a point to find out what factors affect the price of premiums, you can do the math and see if you are able to reduce your premium costs even further. It is definitely possible, provided you take the time to shop around for a deal.
Many people are not fully aware that term life insurance is really a death benefit — money that goes to your family should you die. You want to live a rich and rewarding, long life, and to do this you need to pay attention to your lifestyle habits, as they affect the price of your premiums.
If you smoke, drink alcohol, take recreational drugs or are obese, your policy will likely cost more, as people who do smoke, drink, take drugs and are morbidly obese are at double the risk to die earlier than those who abstain.
Another factor that determines premiums relates to pre-existing health conditions such as cancer or arthritis. People with these diseases can find term life insurance, although it often takes longer to do so and their premiums tend to be higher due to their health issues.
Along with pre-existing health conditions, insurance companies also take your family history into consideration. This means they ask if there are any hereditary diseases that run in your family, such as heart disease. Although there is not much you are able to do about a hereditary health issue, you can make the best of what you have and strive to stay as healthy as possible.
Work in a high-risk occupation? That affects life insurance premiums as well, as some jobs may result in accidental death. For instance, those who work in a facility handling toxic waste, work in the construction industry, law enforcement, or fight fires.
In the final analysis, term life insurance policies are good for anyone, as they are simple to understand and not complicated. If you are not sure they are for you, ask an agent and find out more information.