| How much will Life Insurance Cost? |  |
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| How Much Will Life Insurance Cost? |
Different insurance companies charge different rates for their life
insurance. Comparing costs can be very difficult. For example, one company
might offer a competitively priced policy for 25-year-olds, but not for
40-year-olds.
There are some common factors that insurance companies use to decide how
much to charge you for the kind and amount of insurance you want to buy.
These include:
- your age and gender;
- your health and health habits (such as smoking);
- your family health history;
- whether you are engaged in a hazardous occupation, or have dangerous
hobbies (such as auto racing or sky diving).
The insurance company will get this information from your application, and
may ask you to fill out a health questionnaire, or have a medical
examination. Once they have the information, the insurance company will
decide if your risk of death is average or greater than normal for your
age and gender. If they believe the risk is greater, they will charge you
more than normal. (This is called being rated.)
Remember, a different company may not believe your risk is greater than
normal, and may charge you their standard rates.
If you are "rated," you should be told the reason, such as poor
health or a dangerous occupation. If the reasons for the original rating
improve, tell your insurance company and ask them to review the situation.
Your premiums might go down.
Another major difference in determining insurance costs will be the
insurance company's administrative
fees and expenses, including overhead, agent commissions and other
costs of doing business. |
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Source: Massachusetts Department of Insurance
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For information about Lynch Insurance please contact:
William Lynch |
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