Term Life Insurance Articles
How Age And Health Influence Term Life Insurance Premiums
2010-07-24
What is term life insurance? How do things like age and health affect term life premiums? Why might I want term life insurance over whole life or other policies? If you do not know a lot about term life insurance quotes these are all good questions to ask. Life insurance is a very important thing, especially if you have a family and dependents that rely on you. Heaven forbid you die and leave your wife and children destitute. Life insurance will cover your loved ones in the event of such catastrophe.
What is term life insurance? This is insurance that runs for a prearranged period of time. Term life insurance quotes tend to be a lot less expensive than the other forms of life insurance because of the fact that they only cover a prearranged time period.
How does age and health affect term life insurance quotes? To be frank the older you are the more likely statistically you are to die. If you have a preexisting medical condition that is life threatening it is the same thing. If you increase the odds of death you increase the probability that the insurance company will pay out a large chunk of money to help your loved ones. Because their risk is larger, so will be the premiums. It is like gambling, except in a way it is win-win both ways. If you live you spent money you didn't use (but you live). If you do not, your family is covered in their time of crisis and need. The higher term life premiums for age and poor health are not discriminatory. It is all based on probabilities and the law of average that drive the insurance company actuarial tables. Every case is unique but the quotes must be built off of probability.
Why would I want term life over whole life? Whole life is based on paying out until you die. Insurance companies have to recoup the amount they pay out before the average person dies. So the bill will be larger. There is also a form of investment that comes with this but it is not a good investment. Term life on the other hand covers a particular goal. The perfect reason would be to protect your children. It could cover your family for… perhaps 25 years. You would be healthy and expected to live through this time frame, so costs would be low, but if something unexpected were to happen to you, your children would protected until they finished college and were able to support themselves.
