One reason is the age and risk of the person being insured. An older person with poor health will most likely die sooner than a younger, healthier person. Life insurance companies need to bring in enough premiums to pay claims, so they try to be fair by charging more to persons with higher risk than to those with lower risk. That way the strength of the company and the security of each policy is ensured.
Another reason that life insurance rates vary is because life insurance policies vary. E.g. a 10 year term policy will jump way up in price in 10 years. A permanent policy may keep the same premium for life.
Finally, some policy rates vary because life insurance companies specialize in different types of policies and risks. Some are more competitive with some types of policies than others.
Great question! There are a lot of reasons why the rates vary. Some of the biggest are your age, your health, and whether or not you smoke. Someone who is older, smokes a pack a day, and has high blood pressure and diabetes will pay a higher rate than the same person who doesn't smoke. Someone younger and healthier will pay much less than these older folks will. Different companies will charge more or less than another as a result of their profit margins and financial needs. Different types of policies cost differently also. I'd recommend that you look for an agent that will help you find a policy that fits your needs and budget. If you have more questions, please contact me, I'm happy to help. Thanks for asking!
The main reason life insurance rates vary is solely due to risk. There are many risk factors that life insurance company underwriters look at. A persons age, build, life style, health status, financial status, genes and location all determine the risk of death. The reason rates vary from company to company are they all have their own internal risk factors and some tolerate different types of risk better than others.
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One reason is the age and risk of the person being insured. An older person with poor health will most likely die sooner than a younger, healthier person. Life insurance companies need to bring in enough premiums to pay claims, so they try to be fair by charging more to persons with higher risk than to those with lower risk. That way the strength of the company and the security of each policy is ensured.
Another reason that life insurance rates vary is because life insurance policies vary. E.g. a 10 year term policy will jump way up in price in 10 years. A permanent policy may keep the same premium for life.
Finally, some policy rates vary because life insurance companies specialize in different types of policies and risks. Some are more competitive with some types of policies than others.