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Things That Could Affect Your Life Insurance Rate tight rope picture

Most people would know that your overall health and how old you are play a massive role in life insurance. It determines how much you pay or if you even qualify for the coverage you want. There are many reasons why you don’t get approved for your life insurance policy. Many of them sound pretty unusual but these are things to take into consideration when applying for life insurance.

  1. Your Occupation

If you have a desk job, you don’t need to fret yourself over this one! But, if you have what’s considered a “risky” job, you’ll be looking at a higher premium with life insurance. If you’re a pilot, commercial underwater diver, or prison guard you are placed among those who, depending on which carrier you go with, could end up paying more for coverage than a bank teller or administrative assistant would. Police Officers, Firefighters, Military personal (not deployed) most life insurance companies will give you the best rate available based on your health.

  1. A Recent Bankruptcy

Credit history generally stays out of life insurance premiums, unlike with home and auto insurance. But having a recent chapter 7 bankruptcy in your credit report could make it tougher to qualify. According to several different life insurance companies underwriting guidelines, take AIG for example, they will not even consider offering term life coverage until your bankruptcy has been discharged for a minimum of two years. Now, if you have filed for bankruptcy more than once before, you will not be considered for any coverage until the most recent bankruptcy has been discharged for five years minimum. If you filed chapter 13 recently you will be ok with some companies as long as you are in a court approved payment plan.

  1. Driving Record

If you have a not so clean driving record, you might be looking at higher premiums. You might not even qualify if you have a recent conviction for a serious violation, like a DUI for instance. But this all really depends on the insurance company and the amount of coverage you get through them. Mutual of Omaha, for example, checks motor vehicle records for people ages 18 to 45 who apply for $100k+ of life insurance, and for people who are 46 to 70 who have applied for more than $1 million. But, again, this is just one insurance company from many others who all have very different guidelines.

  1. “Dangerous” Hobbies

Do you like to scuba dive, hang glide, skydive, or rock climb? These are all hobbies that life insurance companies have deemed as pretty risky activities. Shouldn’t come as a surprised when the life insurance company you decide to go with will want to know specifics about your hobby! They is why it is smart to find an agency that shops every company and finds you the lowest rate!

  1. Your Gender

Statistics show that many consumers don’t know that gender affects life insurance rates! For example, a 30 year old male who does not smoke would pay $250/year or more for a $500k, 20 year term life policy whereas a 20 year old female who doesn’t smoke could end up paying as little as $215/year for the same policy. But don’t get upset! Women live longer than men and it’s just the way life works!

Above are just a few things that could affect your life insurance rate but don’t worry.

We have you covered at 1st Option Insurance. We have the best agents readily available to help guide you through any of these problems and many more! Having the right agent really makes buying life insurance so much easier. We shop each and every life insurance company that is A Excellent, A+ or A++ rated by AM Best to find the best rate on the market! CLICK HERE to shop now

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