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How Do Insurers Calculate a Life Insurance Quote?

How Do Insurers Calculate a Life Insurance Quote?

They’re called The Ocean’s Deadliest because your life insurer wants you to leave them alone. Given the amount they pay out, your insurance company pulls no punches when it comes to evaluating your lifestyle for a life insurance quote. The more chill you are, the better for your premiums. When they calculate a life insurance quote, you will be evaluated according to the following demographics.

A List of Things Insurers Look at When Calculating Your Life Insurance Quote

1. Gender.

We would argue that it’s sexist if 26 of the 30 strangest deaths in history weren’t men. On average men are more reckless than women and statistically die younger. This makes them more of a risk. Men thus pay more on a life insurance quote than women.

2. Age.

The younger you are, the less you’ll pay on a life insurance quote. In fact, the younger you start your life insurance policy, the cheaper the premiums will be (if your risk profile doesn’t change too drastically) for the rest of your life. What’s more, young adults qualify for higher insurance pay outs than their older insured counterparts because they’re less of a risk.

3. Vocation.

An Alaskan Crab fisherman pays more on a life insurance quote than a pencil quality control clerk. The more dangerous your job, the more at risk your life is, and the more you pay on premiums. Insurers can decide not to insure clients with high-risk vocations, such as firemen, policemen or members of the bomb squad.

4. Hobbies and Habits.

The same is true for your extramural activities. Tennis is less dangerous than wrestling buffalo, so the recreational tennis player’s life insurance quote will be cheaper, as will the non-smoker’s life insurance quote. Unhealthy habits put your life at risk of dread disease or other complications and thus push up the price of life insurance.

5. Medical History.

If you have a history of dread disease and suffer a long-term illness, then you will pay more for life insurance. In fact, an insurer may decide not to quote someone with a long-term and potentially fatal illness. The cleaner your bill of health, then the less you’ll pay on premiums.

6. Extent of Cover.

Depending on how much life cover you take, your life insurance quote will change. The larger the sum you want paid out to your dependents, the more you’ll have to pay in annual or monthly premiums. Insurers also place limits on the amount that individuals qualify for, given their risk profile.

While many life insurance quotes come with a guaranteed period in which they will not be adjusted, an insurer can decide to (after that period) cancel your policy or increase the premiums. Even if you do decide to take up stingray racing, you might get a cheaper life insurance quote by comparing insurers’ offerings. Fill in our online form and let the quotes come to you.

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