How are life insurance rates determined?

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How do life insurance companies decide what your premium will be?

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It starts with a process called underwriting.

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Underwriting helps insurers review risk factors before approving coverage.

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These factors help explain why premiums can vary from person to person.

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Age is one factor.

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For example, Helen is 45 and may pay less than her 75 year old father because younger applicants often have lower risk.

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Gender also plays a role.

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On average, women tend to live longer than men, which can sometimes mean lower premiums.

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Smoking habits matter, too, because smoking is linked to serious health issues.

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Smokers often pay higher premiums than nonsmokers.

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Health and family medical history are also considered.

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Healthy habits may help lower costs.

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Lifestyle matters too.

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Jobs or hobbies with more risk can lead to higher rates.

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Your policy type and coverage amount can also affect what you pay.

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Applying early and keeping healthy habits may help make coverage more affordable.

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Explore and get answers at www.trustage.com.