Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
There are two basic issues at play. The anticipated life expectancy and how long the coverage is going to last. The premium is the result of statistics compiled over millions of lives and represents the risk to the insurer of providing coverage to a "standard" person.
If you are not "standard" the underwriter may adjust the premium, again, to take into consideration the affects of your health or occupation. They look for anything that can change the risk from being "standard."
The length of time that the insurer provides the death benefit also affects the premium.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Good question! This is something everybody wants to know. Here are some possible reasons for your high premium: 1) you represent a very high risk, such as someone who unfortunately has a serious illness, or who engages in an adventurous hobby such as skydiving; 2) you have a guaranteed premium until age 121 (as opposed to age 100, or for 30 years); 3) you are 85 years old (the premium for an 85-year-old is higher than for a 35-year-old ); 4) you applied with a company that is not competitive for the type of risk you represent - so they slammed you with excessive extra premium.
Licensed Life Agent, Life and Finance/ 50 States, New York
The price of your premium may depend on certain factors that determine rate. Age, sex, health, and current activities or sports and even if you smoke. These are the most important or common questions that arise at determining premium rates. You should know or have been informed of any reason why you may have a higher premium at the beginning of the policy before any payment Is received. Since I don't know all details I am not able to pinpoint the exact reason, but, the factors mentioned will help you.
There are a lot of answers here and all of them have good information. The only other factor that I did not see mentioned here is you may have a product which started off at a lower premium, perhaps a guaranteed period and now you are beyond which the rates will increase depending on the type of policy along with the maximum guaranteed rates in the policy.
Love that the answers focused on underwriting more so than "BUY MY BRAND"... Height, weight, age, family history, and dozens of other factor determine what you qualify for. Each carrier has their "rating" for all these factors. With company A you might get a standard rate because of something like cancer in your family history. Yet company B might offer a preferred rate.
IF YOUR AGENT DIDN'T ASK A BUUUUNCH OF QUESTIONS before submitting your application, they should be FIRED. The typical, "How old are you, what's your height/weight, & do you smoke?" is NOT enough. You may just need to shop your plan again. If you have any questions, reach out. - gravy
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If you are not "standard" the underwriter may adjust the premium, again, to take into consideration the affects of your health or occupation. They look for anything that can change the risk from being "standard."
The length of time that the insurer provides the death benefit also affects the premium.
IF YOUR AGENT DIDN'T ASK A BUUUUNCH OF QUESTIONS before submitting your application, they should be FIRED. The typical, "How old are you, what's your height/weight, & do you smoke?" is NOT enough. You may just need to shop your plan again. If you have any questions, reach out. - gravy