life insurance

What Factors Determine Term Life Insurance Rates
By Peter Crump, Fri Dec 9th

Term life insurance policies provide a limited coverage period,which is determined by the policy owner. Term life insurancerates are actually the cheapest form of life insurance, butthere are different rates for different people. This is becauseonce the term of the policy is up you don't receive any payoutfrom the policy. If you take out life insurance at a young age,you will get much better term life insurance rates than if youwait until you are older.

The total cost of your term life insurance rates can be tricky.Some term life insurance policies appear to cost more, but may,in fact, be cheaper when you look at the total cost of the termlife insurance policy. For example, annual renewable policiesincrease your premiums every year and thus may appear to be moreexpensive than level term policies where the premiums neverincrease (although the initial premiums for a level term policywill be higher). But, in fact, level premium policies mayinvolve higher costs over the policy's full term, and becomeparticularly expensive when you try to renew your policy at theend of the term. This is why you do have to compare term lifeinsurance quotes.

Some of the factors that influence your term life insurancerates are: ·Whether or not you smoke. Tobacco users are twiceas likely to die as non﷓tobacco users while they areinsured. life insurance companies take this into account whenthey set their premium and cash benefits levels. You can savefrom 20% to 30% on premiums by quitting smoking.