What is life Insurance? Do I need it?
What type of life insurance are there? How to I choose which is right for me?
What factors will affect the premium I pay?
The law of large numbers is like legal stereotyping, it allows insurance companies to use statistics to determine the risk of a client. This is why your premiums may very depending on the factors below.
- AGE The older you are the higher your premium with term life insurance. Your rate will stay the same with whole life depending on when you buy in, for more information read the paragraph above.
- Gender Females typicality live longer than men, so females have a lower premium.
- Family health history If your family members have died due to health issues, they can increase your rate.
- Hobbies If you do dangerous activities in your free time your premium can increase
- Job If you have a higher risk of injury at your job ( ex. construction worker) you may have a higher premium .
- Lifestyle If you have healthy habits your premium will decrease.
How do I get a life insurance policy? How do I determine how much it is worth?
Start by going online to compare different agencies. An agent is someone who sells the insurance polices. Most agents recommend enough coverage to replace 15 years of income, you should also add any debts that will need to be payed off. An actuary asses the risk of insuring you. Sometimes if you engage in too many dangerous activities the insurance agency can deny you coverage.