What Makes Life Insurance More Expensive?

Life insurance gives your loved ones peace of mind that they’ll be financially provided for in the event of your death. Despite this, a lot of people don’t have it, many of them with mortgages. They feel it’s an expense they can’t afford or even justify. Yet it doesn’t take a lot of imagination to consider how disastrous it would be if the main breadwinner died without life insurance and their other half was left to pay the mortgage while raising three young children.

If you haven’t invested in life insurance, now is a good time to start thinking about it. But before you do, pay attention to the factors that make life insurance more expensive.

With life insurance in place, your family would be eligible for a large payout that may be hundreds of thousands of pounds, or in some cases, more. The money is often tax-free. To get life insurance NI coverage, you will need to submit an application, and provide some basic details. Always answer these question truthfully and if in doubt double check with life policy provider. 

Your Health Matters

Insurance companies factor in a person’s health when they apply for life insurance. While the insurance company won’t ask the applicant to take a medical before offering a quote, they will ask health-related questions on the application form. If you smoke or have serious health issues, this will make life insurance more expensive because you’re at higher risk of dying within the term of the policy. 

Be prepared to pay more for life insurance if your lifestyle is unhealthy but do shop around for life insurance NI to obtain more competitive quotes

Your Age

The older you are, the more you can expect to pay for life insurance. It’s a bit of a no-brainer really. This is also why a lot of younger people dismiss the notion of life insurance because they believe they are unlikely to drop dead at 25. While that might be true, nobody is immortal and young people do die.  

Male Vs Female

Surprisingly, women pay less for life insurance because their life expectancy is longer. In the UK, women live on average three years longer than men, whereas, in the US, women live an average of five years longer. 

Dangerous Hobbies and Occupations

Lifestyle is another area that life insurances scrutinise closely. For example, someone who does dangerous stunts for a living or who enjoys skydiving as a weekend hobby will almost certainly pay a lot more for life insurance than a stay-at-home mother who prefers reading to white water rafting. After all, you’re more likely to die in a fireball if you are a stuntman than expire from a paper cut in your living room. 

Pier Zip

The Type of Life Insurance You Buy

Term life insurance covers you for a specific period. It’s often taken out in conjunction with a mortgage but is also useful if you want insurance while your children are still minors. 

Whole of life insurance covers a person until their death. This is a more expensive type of life insurance but could be viewed as an investment. 

Joint life insurance is cheaper than two individual policies, so is useful for couples, but once one person dies, the policy ends. 

Always shop around for life insurance and obtain several quotes before choosing a provider. Take into account the factors that might affect the cost and look for a specialist provider if applicable. 

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