You have to pay premiums when you buy a life insurance policy for
yourself in order to keep it in force. Knowing the reasons that may
affect your premium costs is important for you to pay the insurance
company higher premiums.
Life Insurance is a great way to help and protect your loved ones, which
can also be a huge investment. A lower premium paid over a period of a
few years can yield a good amount of savings.Life insurance premiums are
based on a number of factors, and some people may find it quite tedious
to understand why and what the charges are, and why they are paying a
rate that may not be the same as others.Many factors are considered by
insurance companies while pricing their plans, which may not be a
variable under your power. Yet your life choices can also contribute to
factors that can affect your premium for life insurance.
The factors that affect your premium towards Life Insurance are:
This is an obvious and not surprising factor that affects the
policyholder's age of your Life Insurance premium. If you're young, the
rates are going to be lower than someone older. It is very unlikely that
a young person will be able to contract a life-threatening disease or
pass away in their youth. Insurance companies believe you're going to
make a lot of premium payments before they have to write a cheque for
Insurance companies are not opposed to gender equality, but they believe
that different genders have a different life expectancy. According to
the studies and statistical findings, it is believed that women are at
least 5 years older than men. Hence affecting the premium they pay,
making them pay the premium for a longer period of time but at a lower
rate, a plus point for women.
Smoking puts the policyholders at a higher risk of all illnesses, so if
you're a smoker that's as good as raising the insurance companies ' red
flag. Most smokers pay a premium twice as much as they do not-smokers
have a huge impact on the premium.
There's not much to do with the gene pool from which they come. If a
policyholder has a medical history of serious diseases such as cancer,
heart disease, or any other, this makes them susceptible from an
hereditary perspective to these diseases. Which increases the
individual's premium by a greater margin than if they were not in their
You will also have to provide your own health records as the
policyholder. Those reports will ensure that you have no chronic
diseases or potential health issues and will also keep your premium in
check instead of making a difference.
Alcohol consumption is harmful to health in more ways than one. This can
influence your premium at higher insurance rates if you are a large
user of alcohol as the policyholder. Insurance companies make sure that
the client is asked whether they are smokers or drinkers.
The policy itself also affects the premium you pay, the longer the
policy's tenure, the greater the amount of the benefit at the time of
death, as you pay it for that period. Short-term strategies are more
expensive than long-term policies.
Your profession also plays an important role in the premium you end up
paying, any policyholder working in the mining, oil and gas, fisheries
or any other dangerous profession will increase the premium quantities
you pay for the policy you choose to adopt.
To people who love to take risks for the fun of it, most insurers have a
higher premium. Climbing dangerous mountains or other high-risk things,
including speeding cars. Increasing your premium far more than others.
Obesity is another factor that affects your premium as a policyholder,
being obese can lead to a number of health concerns such as
osteoarthritis, high blood pressure, diabetes, stroke, coronary heart
disease, which will cause overall health problems in the future and
raise your premiums as well.
To know more about Health and Life Insurance, you can visit our website http://www.jayantharde.com or contact our representative at +91 712 2282029 or meet us at 51, Gurukripa, Old Sneha Nagar, Wardha Road, Nagpur – 440015.
Created on Dec 11th 2019 07:14. Viewed 353 times.