Many people wanting to purchase life insurance can be put off when they think of the costs involved. To put them at ease and make sure that everyone gets to protect their family in case of a premature death, we will take a look at what determines the cost of insurance and what is the average price of life insurance.
To understand this question we need to understand the basics of what life insurance is and how the insurance company determines the premium costs and the risks that they look at when they insure a client.
The cost of life insurance will depend on many factors. These are some of the factors that insurers take into consideration when determining what they should charge:
-The age of the insured; the older you are the more expensive.
-The occupation; the higher the occupational risk the more the charge.
-The gender usually females rates are discounted.
-The health history of the insured including the weight and height ratio.
-The insured habits like smoking/drinking etc.
-Any preexisting medical condition.
-The amount of coverage required.
-The type of life insurance taken.
-All insurance companies have different rates as there is no standardized underwriting rate.
-The length of the insurance policy
Therefore from the above it is conclusive that the cost of insurance will be different from one person to another.
However there are some minimum charges that any insurance company needs to underwrite any policy. Mostly they have a minimum sum assured that can be taken for different types of life insurance.
Term Life insurance is one of the cheapest type of policy available online and in the market.
Look for a whole life insurance calculator online which can give you some quotes before you get a final premium cost. If you feel you need to discuss with an insurance agent you can set an appointment with one but beware as your cost might end up being higher because the insurer will factor in the agents commission.
It is almost impossible to determine what is the average price of life insurance for any individual without knowing the rate being used by the insurance company and how the above factors influence them in their costing.
If you are looking for a life insurance cover for your family visit Life Insurance Facts for more information on how to get affordable coverage.