3 Unexpected Lifestyle Factors that Affect Life Insurance

Life insurance costs will differ depending on your own needs and lifestyle and the lifestyle choices of your family. It is important to remember life insurance is not truly for your own benefit; it is for the benefit of those you will be leaving behind when you pass away. For this reason, the needs of your family and loved ones are often the greatest factors in determining your life insurance needs and costs.

Family Needs

Depending on the age of your children, they will need different amounts of money if you pass away. As a parent, you accept responsibility to pay for certain items for your children. These include shelter, meals and medical care for young children. You may also decide to cover the cost of education. If you have adult children, you have already met these financial obligations. This means you will not have to consider them with your life insurance. Instead, you will likely only be considering how much it will cost to pay for your funeral and burial as well as your personal expenses after death. Those persons with young children, however, will need to make sure these needs continue to be met after they pass away. The same is true if your children have medical or other needs. You may decide it is your obligation to continue caring for these needs after you are gone, and this will be a large factor in your life insurance policy.

Mortgages and Debts

Many people neglect to consider the financial burden they may be passing on in debts if they pass away before loans are repaid. If you have a high amount of debt, all of it will be passed on to the benefactors of your estate. If your estate is insufficient to cover these funds, then your life insurance will need to pick up the rest of the bill. For this reason, most people aim to pay off all debt to a reasonable level before they pass away. Any home mortgages are typically the most expensive debts to pay off. If you are leaving your home to your benefactors, they may be able to sell it in order to pay off your mortgage. However, if your home is worth less than the amount remaining on your mortgage, then you should consider how your loved ones will cover this cost once you are gone.

Personal Factors

There are a number of personal factors that will change both your policy needs and costs when you purchase life insurance. Your medical history will be very important, and there are certain health issues that are more influential than others. These are the primary health concerns to look out for:

  • Cardiovascular disease
  • Alcohol or drug use
  • High blood pressure
  • Bad cholesterol
  • Obesity
  • Flying as a private pilot

You may be surprised to learn that flying as a private pilot is listed among the many reasons life insurance premiums may increase. All risky professions are taken into account with life insurance, but more companies list this particular profession as high risk than other professions.

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