Age. Typically, the younger you are, the lower your life insurance premium is.
Gender. In most states, men pay more for life insurance than women.
Tobacco use. Nicotine users are more likely to pay higher premiums than non-nicotine users.
Health. If you havecertain health conditions, your rate may be higher. When you apply for life insurance, many insurance companies require you to get a medical exam based on your medical history, the policy, and the amount of coverage.
Hobbies. If you participate in risky recreational activities (such as racing cars or climbing mountains), you may have higher premiums than that of someone who doesn’t.
How do I save on my life insurance policy?
You have more control than you may think. Here’s how to lower your life insurance premium:
Buy a policy when you’re young. Life insurance costs more as you age and health issues crop up.
Buy a policy when you’re healthy. Changes in health may result in a higher premium or inability to get coverage.
Consider a term life insurance policy. This type of policy will generally cover those crucial years when you’re paying off your mortgage and raising your kids. Check with your life insurance professional to find out whether a term life policy is the right one for you.
Quit Nicotine. Being a smoker really drives up your premium. If you stop, you can generally requalify as a nonsmoker after 12 months.
Improve your health. Try to get health conditions that impact your premiums under control. For example, controlling your high blood pressure or diabetes may help you save money or qualify for a life policy.
Pay your premium annually. If you can manage to pay an entire year’s worth of premiums upfront (vs. monthly), you may get a discount.
Contact AAA, which offers competitive life insurance rates and helpful customer service. In fact, a recent survey showed that 95 percent of AAA customers were satisfied with their experience.