Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance broker where you can get life insurance on your terms. I’m Jeanna and I’m Natasha. Today’s question is: what are life insurance risk factors? Well, when it comes to buying anything, cost is usually one of the most important deciding factors and life insurance is no different. But unlike generic items such as a flat-screen TV or a new pair of boots the cost of life insurance is heavily dependent on you. If you and your friend both go into a shoe store and buy the same pair of boots, you’ll both pay the same price. If you and your friend both apply for the same life insurance policy you likely will not pay the same price and this is because your individual risk factors are what determines your life insurance premiums. There are quite a few factors life insurance companies evaluate to determine how much you’ll pay. The most common ones are your gender, age, health, build, family history, job, and hobbies. Let’s talk about each one briefly. Natasha, why does your gender matter when you’re applying for life insurance? Statistically, women live longer than men do. Women, on average, are more willing to go to the doctor if they aren’t feeling well. And they are less prone to risky behavior. Therefore, life insurance companies see them as a lower risk and they pay less for life insurance than men do. Age also affects how much you’ll pay for life insurance because the older you are, the closer you are to death. Right. Age is one of the most important factors in measuring probability of death and probability of death is what life insurance companies base their premiums on. So, a 30-year-old would pay less for life insurance than a 60-year-old. Your health can also greatly affect your longevity and the same thing with build, which is the relationship between your height and weight. If you’re extremely overweight or underweight it can cause health problems. And severe health problems can decrease your life expectancy so, again, life insurance companies take these factors seriously. But not only does your health play a role, but your family’s can too. Because certain medical conditions are hereditary, when you apply for life insurance it’s common for companies to ask if you have a parent or sibling that has been diagnosed or died from heart disease, diabetes, or cancer. But just because you had a family member with a health problem doesn’t mean your premiums automatically increase. The type of medical condition and how late in life your family member was diagnosed would be considered. There are also certain family history medical conditions that don’t affect your evaluation whatsoever. For example, if you’re a male applying for life insurance and your mother died from ovarian cancer the insurance company will disregard this because as a male you can’t get ovarian cancer. Two more factors that have similar effects are your job and hobbies. People are sometimes surprised to learn that their job and hobbies can affect their life insurance costs. If you have a hazardous job or participate in risky activities your life insurance premium may be higher because of it. For example, a construction worker works in an industry that typically has more on-the-job accidents than a teacher. So, the construction worker will likely pay higher premiums than the teacher. And someone who rock climbs for fun on the weekend will pay higher premiums than the guy who simply goes fishing. However, if you buy a life insurance policy and then later in life change jobs or stop that risky hobby you can go to the life insurance company and ask for a reconsideration. A reconsideration is when the life insurance company reviews your current situation and if they believe that particular risk is no longer relevant they may be willing to decrease your premiums. All of these factors can affect the final cost of your life insurance policy. But not every life insurance company evaluates these factors in the same way. The life insurance industry is very competitive and to stand out different carriers cater to different niches. The tricky part is, how is someone supposed to know which company is best for them? It would take a lot of time to do this kind of in-depth research for every single life insurance company. Which is why if you have a health or lifestyle risk factor, a life insurance broker is your best bet. Quotacy is a broker and this means we have access to multiple life insurance companies and we aren’t tied to any of them. We’re completely independent. Our agents will review your application and shop your case to find the best company option for you. And because Quotacy is an independent broker, we ultimately don’t care which insurance company you apply to so we won’t push you towards any one company if there’s a better choice for you. After you apply online through our website, your agent will review your application. If they see you have a risk factor that might affect your final price, they’ll shop your case and present their findings. The route you take is 100% up to you. If you’re a healthy individual and have no risk factors that stand out your agent will simply push your application through to the original insurance company you picked on our website. This is why if you’re not sure which insurance company to pick we typically recommend you just go with the least expensive choice since on the back-end our agents make sure you end up with the best price anyway. Thanks for watching. If you have any questions about life insurance, make sure to leave us a comment. And if you have any questions regarding today’s topic check out the blog link posted below. And if you’re ready to get quotes check out Quotacy.com. We’re here to help you find the best deal on the life insurance you want. Bye! Thanks for sticking around. We’d appreciate it if you Liked the video and hit that fancy little Subscribe button to see us every week. Bye!