Life Insurance

Monday, March 20, 2006

Factors that influence term life insurance rates

The factors that influence term life insurance rates are extensive. Here are just a few factors that can tip the balance when it comes to a life insurance company issuing you with competitive term life insurance rates: -

Smoking has a major influence on the rates of term life insurance. Smokers are at a high risk from contracting lung cancer and from developing breathing disorders, all of which can lead to an early grave. Recent research on life insurance rates suggest that a 35-year old male who smokes could save 51% on the cost of term life insurance if he was to quit smoking.

Obesity is a growing problem in developed nations. Too many of us are eating the wrong foods and not exercising enough, putting us at risk of dying young. Term life insurance companies penalise overweight people by increasing insurance rates, as they are seen as being at a greater risk than those who eat a balanced diet and exercise regularly.

Hereditary Disease
Susceptibility to potentially life threatening illnesses passed down through the family line are penalised too by term life insurance companies. If you are medically confirmed as being at a higher risk of contracting a life threatening illness because of family history then your term life rates will be higher.

Environmental Factors
Exposure to abnormal doses of x-rays, asbestos or other substances that are conducive to poor health later in life will attract high term life rates.


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