Life Insurance: Age and Other Factors

Here is one truth about life insurance: most people do not think about getting one until they have a family. And even then, they wait until their family is somewhat financially stable and have income to spare. The problem is, for most families that are starting up, the expenses are often too large, and it takes a considerable amount of time for them to actually afford to purchase an insurance policy.
 
This is why most financial experts recommend getting life insurance when one is still single. When a person is single and young and making money, the probability that s/he will afford to pay for the life insurance policy is greater. This is because younger people are afforded better rates by life insurance companies. Thus, cheap life insurance can be possible for younger people.
 
Life insurance plays on the time value of money. The longer you invest in a life insurance policy, the greater the possibility that the life insurance company can make your investment grow. Thus, they offer lower payment rates to people who are expected to live longer as their investment’s life will also be longer as compared to somebody who is expected to die after five or ten years from their initial investment.
 
However, age is not the only factor that determines whether an insurance company finds you as a good source of investment. Some other factors include your lifestyle, health, and occupation. For example, if you enjoy extreme sports, your risk factor is higher than that of a person who does not indulge in these types of sports. Extreme sports expose a person to accidents and dangerous situations which leads to a shorter life expectancy. The same is true for people with poor health and people whose jobs put them at risk.
 
According to financial experts, if you want to get cheap life insurance while still affording a considerable amount for your beneficiaries, you must stop bad habits, risky hobbies, and check your health.