Family First Life specialises in mortgage life insurance, final expense life insurance, as well as retirement planning through universal life policies, and retirement protection through the use of fixed index annuities. Working with multiple carriers, Family First Life works to ensure better protection of their clients and their agents as well. They have recently hit a record week of over 10 million issues, and they are the number one life distributor with Americo since 2014 and Mutual of Omaha for the past four years.
An insurance premium is essentially the amount of money you pay for the insurance policy you have bought. This is done after a given period. Explaining this, Family First Life also notes the price per policy will tend to differ from person to person. Each situation is unique. Additionally, there are different types of policies.
Here are five factors that will affect your life insurance policy premiums according to a leading insurance IMO, Family First Life:
Type of insurance policy
There are different types of life insurance - a whole life policy and term policy being the two main policies. With a whole life policy, better known as a permanent policy, this is where the life insurance policy lasts your entire life. On the other hand, a term policy is a temporary cover depending on the time agreed upon with the insurer.
With the whole life policy, Family First Life explains that you must keep paying the premiums for it to last your entire life. Since it is a permanent package, it is a bit more expensive compared to the term policy. This equally means the benefits will also be much higher.
Age
Age is an essential factor in determining premiums; the older you are, the higher your premiums. While no one can predict when they will die, life expectancy is around 75–80 years. For those who are much older, premiums are higher to help them save up much more.
Health condition
In calculating premiums, Family First Life explains that knowing the health of the insured is essential. This helps the insurer know if there are any existing medical conditions. Depending on your health, the insurer calculates the risks involved to determine the amount you need to pay as coverage. In addition, they check on your smoking status, drinking, hobbies, and lifestyle in general.
Family medical history
A medical analysis is done on your immediate family members; Family First Life explains this helps the insurer know if there is a history of certain health problems in your family.
Death benefit amount
The death benefit amount is what your beneficiary will receive in the case of your death. With this, Family First Life notes the choice of premiums depends on you. If you want a higher death benefit, then automatically, you will pay a higher premium.
The above points are some of the common factors that may affect your life insurance premium policy. To know more about life insurance policies and what cover is best for you, you can visit Family First Life.