Comparing Life Insurance Rates Author:    Posted under: Life InsuranceLife Insurance Rates

Why do the same things cost differently. Let’s say you want to get a massage, Swedish. So, you go out and scout for the best place to get one. What you discover while going around is that the same massage costs much more than in some spa. You tend to question why since you will be getting the same kind or type of massage.

The answer lies first and foremost on the type of facility the spa with a higher cost has. Next is the kind of service you will be getting and third is how long the massage will take. These tell us that even though you think that you are getting the same thing do not mean you will pay the same amount.

The same is true in life insurance. No two life insurance companies will be giving you the same premium amount. Some will cost much higher than the rest. And we wonder why this is so. Where does the difference lie? We even question our worth.

Experts say that insurance companies rate an individual based on his or her physical characteristics, hobbies or vices (smoker), work, family and medical history and mortality rate. Insurance companies use different rating or value on each aspect. Some may give higher importance on work rather than physical characteristics or medical history.

Another factor insurance companies look into is your financial capability. Based on your compensation, how much would you be willing to spend on life insurance premium? Or do they see you as someone who will bail out in the long run.

Your age is another factor that insurance companies look into. If the company targets younger demographics, they will definitely offer lower premiums than the others. But basically, if you start with your life insurance at a younger age, your premium will be lower than those who are older when they started.

The type of insurance company where you get your policy is also detrimental to the amount that you pay. The bigger and successful the company is the higher the premium amount is. Some experts even discourage individuals from getting insurance policies from smaller companies. Who would know if that company would fold in the next five years or so? It’s better to be safe than sorry.

Some companies also offer additional benefits on top of the usual life insurance policy. The more the benefits you get, the higher the premium you pay.

Bottom line is to determine what you really need. Resist the temptation to be enticed by additional benefits and freebies because they are after all not free.

Again, doing your own research also helps you make an informed decision, a decision that’s right for you and not because it was right for someone else. Talk to as many insurance agents as possible to compare and contrast each policy that they offer you.


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