If you’re shopping around for life insurance, one of the first things you’ll notice is the variety and amount of information you’re asked about. Your height, weight, age and gender are some of the most basic questions you’ll be asked, and potential insurers will also want to know whether or not you use tobacco products. Depending on the type of life insurance quote you’re applying to obtain, you could be asked a whole host of additional questions about your lifestyle.
What are life insurance companies trying to determine with all these questions, and how do your answers affect your life insurance quote rates? The information you provide is used to assess whether or not you fall into what insurers consider high-risk groups. You may be assigned to a high risk group if you smoke, are overweight, have high cholesterol, suffer from depression, or abuse alcohol. Participation in extreme sports, frequent flying and a history of speeding tickets and risky driving can also put you in a high-risk group.
Life insurance companies use a variety of factors to determine how likely they are to have to pay out on a term life insurance policy, or how likely it is they will need to pay soon on a permanent life insurance policy. The life insurance quote you receive reflects their determination of your risk for early death, and there’s little you can do about it – other than change your lifestyle, and shop around for a more affordable life insurance quote.