Having a plan to take care of a spouse or children after a person dies is among the main reasons why life insurance offers financial peace of mind. But how is the cost of premium payments determined? Kleppinger Insurance, LLC, in Bethlehem, PA, provides clear answers and customized coverage based on their clients' unique needs and preferences. Here, the local firm explains what factors are considered when it comes to paying for a policy.
Life Insurance Price Factors
Women tend to live longer than men. As a result, their premium payments may be slightly higher, as they may incur more costs to pay for health-care-related expenses.
A person's age is among the key factors life insurance providers examine when determining coverage costs. The younger the person applying, the healthier they usually are, and the more time they have to pay premiums, so the price offered will usually be lower.
People who smoke tend to have higher life insurance payments. Their unhealthy habit puts them at a higher risk for certain types of cancers and other diseases.
Type of Job
If a person works in a hazardous environment, they usually have increased exposure to injuries and fatalities. Some of these professions include airline pilots, mine workers, and oil and gas refinery employees. Given the dangerous job conditions, life insurance premiums may be higher.
The duration of the policy also affects the price. Term life insurance plans, which are commonly offered in 15, 20, or 30-year increments, tend to be cheaper than permanent ones. Because they remain in place as long as the coverage holder makes on-time payments, premiums are often higher.
If you're married or have children, a life insurance policy is worth the financial investment. Let the team of experienced and friendly agents at Kleppinger Insurance, LLC, help you select a plan that's affordable and comprehensive. To get started, call (484) 357-1485 today, or visit the website to get a quote.