Five Non-Medical Factors That Could Affect Your Life Insurance Rates
It can be a challenge to understand why some of us pay more life insurance than others. Life insurance carriers take many factors into consideration, not just medically-related. Here are five non-medical factors that you may not have known would affect your rates:
1.Your driving record is one of the factors. All life insurance companies run your driving record and if you have excessive moving violations or if you have any DUI’s, this would affect the pricing on your policy. These types of activity on your record could make you more of a risk as you have a higher risk of possibly dying. Insurance companies would charge a higher premium for your policy.
2.A hazardous occupation is another factor that could affect the pricing of your life insurance. Any profession that is extremely dangerous would warrant a higher premium. Some examples would be fireman, policeman, oil rig workers, and high rise construction workers would warrant the insurance company to charge a higher premium.
3. A hazardous activity would also be a factor in higher prices for life insurance. Things like, sky diving, bungee jumping, rock climbing, racing and private pilots can affect your rates. These types of activities can cause higher premiums but sometimes these types of activity can be excluded from the policy which means the policy won't pay if you die while engaged in the excluded high risk activity.
4.Foreign travel is another factor for life insurance premiums. If you travel to high risk places that are on the government alert or travel warning list, this could also affect your premium. Not only where you are traveling to but also your length of stay and purpose of travel would also be considered.
5. The fifth factor that can affect your life insurance premiums is family history. If you have parents or siblings that passed away prior to the age of 60 due to cancer or heart problems this would affect your policy also.
About the author: Pam Fortier has been in the life insurance business for over 30 years. She also holds both a LUTCF designation and a CISR designation. Pam is adept at helping clients select the coverage they want at the price they can afford. You can contact Pam at 1-800-651-1953 or PFortier@Pivot.com.