Most people are surprised to find out that what they do for fun can greatly impact their life insurance policy and premiums. There is an ongoing relationship between insurance and risk that is implied. When seeking out a life insurance policy, we often think factors like age and health status are going to play a bigger role in determinations.
The truth is that everything is hinged on each other. There is no magic recipe or formula that is applied to these determinations. Through research you can learn about how choices you make in your day-to-day can result in higher or lower premiums and make any necessary adjustments.
When to Buy Life Insurance
As a mom, life insurance is likely the last thing you’re thinking about. The daily pressing needs of dishes and kids’ activities tend to take up most of our time and energy. Yet we need to be prepared for the unexpected as moms. Part of caring for your children should be ensuring that both you and your husband have life insurance in the case of an unfortunate event.
The sooner you purchase your life insurance, the better, as you’ll have more options and more time to pay into your life insurance policy.
What to Expect when Buying Life Insurance
A life insurance policy is meant set our loved ones up to be financially cared for during a time when we are no longer around. If you seek out this policy at a young age, or when you are in relatively good health, you might be wondering what you can expect and what you need to consider. Just as car or health insurance policies do, life insurance policies have opportunities to increase coverage, for a cost. Long-term care insurance is a great example of such an opportunity.
Do your research and learn about what exactly long-term care is, so you can determine if it is applicable to your life and makes sense to add it onto your policy. Before you can answer the question of whether long-term care insurance is worth it, you should compare plans and details. Being able to breakdown what the costs are and what benefits you will be afforded because of these higher premiums is one part of the decision-making process.
You can expect factors like chronic illness or a history with major illness like cancer to be reasons why long-term care might be right for you. And while cancer is primarily out of your control, other chronic disease can be linked to your lifestyle choices and those are things you can control. A healthy and balanced diet combined with appropriate physical activity and rest can improve both your quality of life now and your quality of life down the road.
Unique Variables in Your Insurance
Your lifestyle and health history are the other significant part of your life insurance premiums. If you engage in high-risk activities like specific hobbies, habits, or even certain jobs, long-term care might be right for you depending on how likely you may be to end up in a situation down the road where you are unable to care for yourself. Some obvious red flags for insurers would be things like illness related to unhealthy living or smoking.
Try using an online life insurance cost calculator to give you an estimate of what life insurance may cost. This can help you gather information and see what factors in your life will affect your life insurance. You may be able to compare multiple life insurance plans online to find one that best fits your lifestyle and needs.
You might be surprised to learn that having to disclose hobbies like scuba diving or mountain climbing can also tie into your policy options. The higher of a risk you are determined to be, the higher you can expect your premiums to be as well. Insurers need to feel security and comfort when approving certain individuals and these are activities that can make them feel exactly the opposite.
Don’t let these variables discourage you from enjoying your life though, because even activities that you might consider to be routine and safe could be viewed differently by the insurance company. As an applicant, focus on things you can control that do not feel overly sacrificial or restrictive.
Do you have life insurance? What did you wish you’d known when you were buying life insurance?
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