Reader’s Question:

Would my age be a major factor when my life insurance rates here in California are computed?

Harry

Pomona, CA

Yes, age is definitely a big factor in determining your life insurance policy. It would cost less to provide life insurance coverage to someone in their mid-30s as compared to someone who is in their late 80s. This is because an older person would have a much higher chance of costing the life insurance company money in the form of death benefits payments. Also, not all life insurance policies are designed for senior citizens, most are long term commitments that are either designed to make your money grow and has a certain holding period in which, in the event of your untimely death, the beneficiaries might receive less (or none at all) of the benefits agreed upon in the life insurance policy.

It would also be beneficial to know that your health, your lifestyle and any pre-existing medical conditions or illness that you may have would also affect how your life insurance policy there in California is priced. Depending on your health, you may fall under four categories most commonly used by life insurance companies namely, Preferred Best, Preferred, Standard, and Tobacco. These categories range from the best life insurance rates available (Preferred Best) to the most expensive (Tobacco). If you travel a lot or take part in extreme sports, or activities that frequently places you at physical or medical risk, your life insurance premium might be higher to reflect that.

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