Congratulations, you’ve finally decided that you need to take out a life insurance policy. Perhaps you realized that you need a way to replace the income you bring in for your family, fund a charitable cause, provide supplemental income for life, pay for your funeral expenses, or even an amalgam of these reasons.
Whatever motivated you to take a policy out, chances are you want to get the most affordable coverage you can. However, you might be shocked to learn that there are some surprising details life insurance providers take into account when determining life insurance rates.
That being said, you should know about these factors so that you can do something about them. So, here are a few of the most surprising risk factors that affect life insurance rates.
Your Credit Score.
Statistics show that people with lower credit scores are at a higher risk than those with good credit scores, so insurers will charge the former group more. Although some states, like California, don’t allow insurers to use credit scores as a risk factor, it’s still nevertheless a good idea to keep a keen eye on your credit score.
Your Car’s Horsepower.
The more horsepower your vehicle has, the higher your rates will be–even if you bought a six-cylinder Toyota Camry instead of the four-cylinder alternative. It’s only natural for insurers to take a person’s car into account when quoting them a price, so the safer your vehicle is all around, the lower your rates will be.
Your Hobbies.
Your hobbies can either positively or negatively affect your life insurance rates. Activities like jogging, yoga, or recreational sports can all lead to better life insurance rates since they’re healthy to have. In fact, you may even be eligible for a discount sometimes. Conversely, risky hobbies, like skydiving, can negatively impact your life insurance rates. Thankfully though, most providers also take into account the frequency of the hobby. For example, if you only scuba dive once a year, it shouldn’t impact your rates too much.
Whether you’re looking for a whole life insurance or a term life insurance policy, these factors will affect your premiums. If you’d like to get a more affordable life insurance policy, then you should likely consider making some lifestyle changes. If you have any questions about life insurance rates, feel free to ask in the comments. Read more blogs like this.
