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5 Things that Determine Your Senior Life Insurance Premiums

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Senior life insurance premiums can sometimes feel like a roll of the dice. Your insurance agent will ask you an array of questions, nod strategically, and then disappear only to come back with a number from thin air. How this number, your senior life insurance quote, is arrived at is a complicated procedure that will differ from provider to provider, but there are some major factors to take into account when considering whether or not senior life insurance past retirement is right for you.

Senior Life Insurance Premium – How Hobbies Affect Rates

Life after retirement can seem empty to many. After a lifetime spent in the workforce, it’s hard to adjust to a life free of work-related commitments. In response, many seniors will pursue new hobbies to develop their interests and pass the time. Surprisingly, however, the hobbies that you choose can affect your insurance premiums.

It’s well-known that senior life insurance providers are worried about how risky a lifestyle you lead and many popular hobbies these days carry some degree of risk. As an example, an insurer is likely to charge you more on your senior life insurance premium if you take up rock climbing over chess, simply because one is much riskier than the other.

If you don’t want an insurance agent dictating how you spend your free time, take note of safety precautions that can be taken in risky hobbies. Continuing with the rock climbing example, providing certification of something like your belay training or knowledge of safety practices can go a long way towards putting insurance providers at ease and knocking your premiums for life insurance for seniors down.

Medical Conditions Can Affect Senior Life Insurance Premiums

According to the WHO 68% of deaths in 2012 were caused by non-communicable diseases or conditions. Given this data, it’s no surprise that insurance companies are keenly interested in your medical history. Pre-existing conditions with any significant mortality rate like heart disease or cancer can drive your premiums incredibly high since insurers don’t err on the side of you fighting through it. Providers can also be paranoid about things like the warning signs of Alzheimer’s, whether they amount to anything serious or not. Also, naturally, companies that offer universal life insurance, term life insurance, and whole life insurance coverage will typically offer lower monthly premium payments if you’re a non-smoker than if you’re a smoker because of the lower life expectancy for someone who smokes.

The medical exams required by many insurance providers can be invasive, time-consuming, and can cause some providers to refuse a life insurance policy for seniors whose medical histories they don’t like. If you’re worried about any of these things, you may want to consider a no exam senior life insurance plan. Plans with no medical exam will often run at higher senior life insurance premiums, but they’re typically approved very quickly and there’s no chance of being denied coverage because of any pre-existing condition. These options typically are not available in the form of a term life policy; instead, you’ll probably find a small whole life policy is the type of policy that you will be offered if you want to avoid a medical exam.

Driving Habits Affect Senior Life Insurance Premiums

With so many car accidents on our roads, insurance providers are going to be interested in your driving habits, since they can place you at greater or lesser risk. Although many seniors are reluctant to give up the independence that owning and driving your own vehicle represents, it can be a good way to save money on senior life insurance premiums. If driving is an important part of your life, consider getting training or certification for safe driving. As with hobbies above, having documentation to support your claim to safe practices can go a long way with a senior life insurance company.

Where You Live

As we’ve discussed before, your country of residence can affect your senior life insurance premiums. Insurance providers will rank countries depending on how safe they are to live and travel in. In general Europe and parts of North America are pretty safe, especially for foreigners. As a rule of thumb, if a country is in the international news often, it’s usually going to rank worse on your provider’s list.

Policy Choice

Not a lot of people take their policy into consideration when they’re contemplating insurance quotes, but it’s often the easiest thing to change in order to get a better deal. In particular, it can be beneficial to weight the costs and benefits of a term life insurance plan as an alternative to whole life insurance. If you don’t expect to need a plan that lasts longer than a 20-year term or 30-year term, term life insurance is a great choice. Level term insurance with level premiums often comes with higher coverage amounts, so your term policy should pay for more than just funeral costs and should help your beneficiary with their financial burden after you pass away. Monthly payments can be more affordable, too. However, term insurance isn’t an option for everyone, so you may or may not be able to purchase this type of policy.

Along with keeping the information above in mind, you’ll want to shop around before you purchase a term life insurance policy or whole life insurance policy/final expense policy. Our licensed insurance agents will talk to you about your needs and help you choose a policy with a cash value and death benefit that is right for you. Give us a call or make use of our website so that we can help you find the best life insurance option.