How Is Life Insurance Priced?

Life insurance is provided by companies either directly, on-line or through a broker or agent. Your price can be determined by a number of factors, including your age, occupation and state of health. Smokers can be charged more though some companies will not charge as much, if it is only a cigar or pipe now and then. You answer questions about seeing a doctor regularly, and if you take any medication. Not all medications will affect a premium determination. Even if you do have a health issue, you will not necessarily be declined insurance, but will likely have a surcharge on a portion of the premium.

A car dealership providing financing on a new vehicle will offer life insurance as part of their package. Usually creditor insurance is much less expensive, if it is purchased through the life insurance company.

If price is your main concern, then you need to talk to a broker about your options. Try to determine the best type of insurance for your needs. The research you do, will help you to understand the options you will be given.

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