Its common knowledge life insurance is to care and protect your family. Its easy when you contact us at SelectQuote to shop life insurance rates and policies from multiple carriers. Sometimes life gets busy and despite good intentions, we dont get to the finish line with buying life insurance. And while we dont recommend putting off getting life insurance, we know it happens now and again. Sometimes life insurance carriers may decide to change rates – sometimes lower and sometimes life insurance rates go up. Learning the how and why behind these life insurance rate changes can help you use rate adjustments to your advantage.
Do Life Insurance Rates Change?
There are many factors that go into calculating life insurance rates. Some of the most commonly used factors include:
- Age. The older you are, the sooner your insurance carrier will pay out on your policy. If youre younger, youre statistically less likely to need your policy to pay out, so youll be eligible for lower rates.
- Current health. The bad news is if you have existing health conditions that put you at risk, you may have higher rates. However, the good news is if youre in good health, youll likely be eligible for lower rates.
- Family medical history. Certain health conditions are genetic and your familys health history can reveal if you have a higher or lower risk of developing these conditions.
- Gender. It may seem unusual, but gender is a common factor used for calculating life insurance rates. This can be good news if youre a female, but if youre a male it can mean you may have an even stronger reason to reassess your life insurance options.
- Unhealthy habits. The most common habits that are considered when it comes to life insurance rates are smoking and drinking. If youve recently cut back on your unhealthy habits or quit them entirely, you have a good chance of lowering your rates by reshopping for life insurance.
- Dangerous occupations. Simply put, some jobs are safer than others – you wouldnt expect an accountant and a police officer have the same amount of risk in their daily lives. What you do for a living plays a part in calculating your life insurance rates.
- Risky hobbies. If you live your life on the wild side and enjoy deep sea diving or base jumping, you assume more risk than having a less exciting hobby.
- Type of life insurance. Youll need to decide what type of life insurance is the best fit for you, and this decision will play a major part in the cost of your rates. Term life insurance is generally the most affordable.
- Size of life insurance policy. Its important to take some time to determine how big your life insurance policy should be. Youll have to find the right balance between higher/lower rates and a bigger/smaller payout.
Some life insurance carriers have included additional testing to their applications and renewals, which can reveal changes that may not be in your favor. This is why its so important to understand how life insurance rates are calculated, so you know which factors you can use to your advantage.
Will Reshopping for Life Insurance Lower my Rates?
If youve already purchased life insurance, you may wonder if you qualify for a lower rate. Reshopping for life insurance is how you can find out. Comparing quotes could reveal you can get a lower rate or even increase your coverage for the same cost.
Maybe youve looked into life insurance, but you didnt purchase any because you didnt think it was affordable. Now is the time to take another look and re-evaluate your options. You might qualify for a better rate than you expected. Dont miss the opportunity to upgrade your coverage or lower your rate before rates change again.
Why wait to see what life insurance rates you qualify for? Act now before rates change. Contact a licensed SelectQuote agent now for a personalized recommendation, and well be happy to help you shop or reshop for life insurance coverage you can afford.