| Life Insurance Rates Based on Your Habits |
Health, weight and smoking aren't the only factors life insurers use to set premiums. Your lifestyle, job and personal habits also factor into the rates they charge.
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Here are several examples of rate-setting based on lifestyle: |
| Driving Record |
Even though we're discussing life insurance, and not car insurance, your driving record and accident history factors into your life insurance premiums.
But guess what? Being involved in a major car wreck won't affect your premiums if DUI wasn't a factor in the accident. But a history of breaking traffic laws - especially speeding - can raise the cost of your coverage. So beware of having a lead foot.
Moving violations in the past three years and a DUI in the past five to 10 years may likewise raise a red flag to insurers. Obeying traffic laws will keep the roads safer, your license point-free and life insurance rates down. |
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| Your Choice of Employment |
Obviously, some jobs are more dangerous than others, and life insurers factor this into your premium. All things being equal, a CPA will likely receive a lower premium than a construction worker building a skyscraper.
Again - insurers have pricing methods that are proprietary, and some may cover those with high risk employment while other companies won't. Getting a quote in advance lets you find out early which insurers will insure a high risk employee.
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| Credit History |
More than ever your credit history affects your life, and even how much you will pay for life insurance. A bankruptcy in the past five years can raise your premium, ditto a history of late bill payments.
Some life insurance companies won't check your credit record at all. An online query can help you determine in advance which companies do and don't.
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