When it comes to investing in a life insurance policy, part of the necessary research includes the make-up of the premium. It’s important to research possible fees and costs for life insurance plans when you decide on buying. Being prepared and knowing the facts is key.
The website for one of the industry’s leading trade groups, the American Council of Life Insurers (ACLI), explains the various costs that consumers should expect to encounter when opening a new policy.
It’s especially crucial for consumers to be aware that the cost of their premiums will be influenced heavily by factors like their age, health and family medical history. Other factors may include work-related risk factors and whether one is a smoker or has potentially dangerous hobbies, such as skydiving.
The life insurance contract should provide clear information on any other fees consumers might find themselves subject to. For example, those who cancel their policy or borrow from the value of it may face fees, notes the ACLI. Of course, there may be additional fees imposed if a person makes late payments or allows premiums to lapse because of non-payment, although there is often a 30-day grace period provided by the insurer for such situations.