• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

My blog

Just another WordPress site

  • Home
  • About
  • Contact
  • Blogging
  • Budgeting
  • Business
  • Finance Blog
  • Life
  • Save Money

Getting a Quote: 5 Factors That Affect the Term Insurance Pricing

By Thomas on December 9, 2019

When looking for insurance, you’ll know that there is a tremendous amount of diversity in the quotes you’ll get back from different companies. Some will aim to be as cheap and as affordable as possible, whereas others seem to be priced astronomically, and it’s hard to understand how they could justify such a figure.

However, when you start to understand the different terms and factors that are used to price insurance plans, you can start to see how to improve the quotes you’re getting, or how the price is decided in the first place. With this in mind, today, we’re going to explore the five key factors that affect insurance pricing.

1.Your Unchangeable Factors

Several factors will go into your insurance term plan quote that will act as a base for your pricing. For example, your gender, your age, and your family history will all be taken into account when looking into health insurance policies and will affect the final quote you receive.

Unfortunately, there’s not much you can do about this, and if you have a long-running health condition in the family, this will increase your premium since you’re far more likely to suffer from this yourself. If you’re older, you’re also more likely to run into health complications, therefore needing to pay a higher premium.

2. Your Lifestyle Habits

One of the most essential things your term insurance company will look at is how well you look after yourself and the kind of lifestyle habits you’ve chosen. Do you exercise regularly, drink lots of alcohol, or smoke a lot? If you are making what they would consider poor lifestyle choices, this can affect your premium.

3. Your Free Time

What you choose to do in your free time will dramatically alter the premium of your insurance quote, but it’s important you’re honest with this section of the quote. For example, if you add snowboarding to your list of hobbies, this will increase your premium, but if you’re in a snowboarding accident, you’ll be covered.

If you don’t mention this and you’re involved in an accident, the insurance company may not payout.

4. What You Do For Work

Depending on what you do for work can affect what your best term plan will be. If you work in an office and there’s not much danger, your term plan can be cheaper. However, if you work in a dangerous occupation with hazards, especially those with an increased risk of death, this can raise your premium costs.

5. What Kind of Policy You Choose

If you’re paying for a long policy, the more expensive it will be (over the course of the entire plan) because it’s far more likely you’re going to pass away during this time or will experience poor health. For example, if you compare a 30-year plan to a ten-year plan, the 30-year plan is going to be more expensive, although they will typically be more affordable on a monthly or yearly basis in terms of payment plans.

Summary

As you can see, there are lots of aspects insurance companies will consider when it comes to pricing up an insurance term plan, and it’s up to you to ensure you’re looking for the best deal. Don’t be afraid to ask questions as to what is being considered for your price, or shop around to find the company that’s right for you.

Tweet
Pin
Share
0 Shares

Primary Sidebar

About Us

I’m Thomas Stevens, a financial advisor who has a love for SEO. Anything numbers related excited me, so I started blogging about finances and budgeting. I also help others blog about finance – it’s always good to have a niche! Read More…

Archives

  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • May 2020
  • April 2020
  • March 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017

Popular Posts

Recent Posts

  • Term Insurance Guide for Young Professionals
  • Four Golden Steps for Becoming a Day Trader
  • February Financial To-Do List
  • Term Insurance vs. Traditional Life Insurance Policies
  • 6 Features Your Chosen Term Insurance Plan Must Have

Facebook

Be a Money Blogger

Facebook

Be a Money Blogger

Let’s Connect

  • Email
  • Facebook
  • Google+
  • RSS
  • Twitter

I’m Thomas Stevens, a financial advisor who has a love for SEO.

Anything numbers related excited me, so I started blogging about finances and budgeting. I also help others blog about finance – it’s always good to have a niche!

Copyright © 2021 · Smart Passive Income Pro on Genesis Framework · WordPress · Log in