A life insurance policy is a smart financial investment that will pay out a lump sum to your named beneficiary at the time of your death. If you have loved ones whom you want to care for after your death, a life insurance policy is a wise way to make sure they receive that care.
You have much to consider when you’re choosing a policy, from its length to its terms and monthly or annual rates.
Your insurance provider takes many factors into consideration when granting you a policy. Your age, gender, health, hobbies, and driving habits can all come into play. While you may not have total control over some factors, you can easily improve on others to receive better rates. If you stop smoking, for example, or get to a healthier weight, your premiums will go down. Your choice of pastimes can impact your insurability as well. Motorcycle riding, mountain climbing, hang gliding, and other dangerous activities can make applicants more difficult to insure.
If you’re in a good position to secure a low rate now, shop for a policy that will let you lock it in. A term policy won’t increase your premiums over time, even though applicants who are older adults will generally spend more for life insurance. With the right approach to your life insurance, you can find that sweet spot with an affordable premium and great benefits. Check your knowledge of life insurance with this quiz from Health IQ to see how familiar you are with the elements of life insurance policies.