subject: How Insurers Compute Your Life Insurance Premiums [print this page] Some people are not aware of the fact that obtaining a life insurance policy is not merely restricted to individuals who are already beyond 50 years old. Most of them do not recognize the significance of preparing for the unforeseeable as early as possible as it is of utmost importance that their family members acquire as much financial assistance as they can, especially during the times when they are encountering extreme emotions and financial constraints.
It is a common knowledge that every type of insurance is different from person to person, so it would greatly help if you are informed of the factors determining them. This article lists three determinants of life insurance premiums.
1. Over-all Health
Another thing that would highly sway your life insurance rate is your health, which would be assessed via checking of weight and blood pressure and undergoing diagnostic exams like urinalysis, ultrasound, x-ray and blood tests. All of these aim to detect medical conditions, such as high cholesterol, drug dependence, diabetes and HIV.
Therefore, once your family history includes illnesses, such as diabetes mellitus and heart problems, you could suppose for a higher life insurance premium.
2. Age
One more significant factor that would definitely affect a life insurance premium is your age. The higher your age is the more possible it is for your life insurance rate to escalate due to the probability of your policy being claimed sooner than expected.
3. Gender
It is a common fact that men die sooner than women and this is simply because they are prone to more diseases and are highly likely to give in to vices. Hence, men get to pay for higher life insurance rates than women. Ironically, women's premiums for trauma and income protection insurance tend to be higher compared to their male counterparts.
4. Way of Life
The life insurance company may also examine your lifestyle, and it might probably assess the presence of bad habits, such as drinking and smoking, which might negatively influence your rates.
The final components swaying your life insurance premiums are your work and hobbies. If you are the type of person who loves extreme sports or devotes a considerable amount of time risking your life as a source of income, then you would probably pay for a costly life insurance rate when compared to individuals who just makes sweaters as a hobby and lounge in an office as a career.
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by: Andrew Scherer
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