Factors that Determine the Premium Rate of Senior Life Insurance

The premium rate is always the concern for the client. This is the amount which needs to the provider on a monthly or yearly basis. So, you definitely should know exactly how much you are going to spend as a purpose of premium and this will help you to make a plan. You might be wondering why the same amount of coverage is different to you in terms of premium rate than your colleague or relatives. This article will broadly discuss about the prime factors that is responsible for the higher premium. So, are you going to reveal the secrets out of it?

The insurance providers have some risk factors and they measure them to evaluate the premium rate. The first thing is the health of the client. It plays the major role while calculating the premium of senior life insurance. You should have a sound health to ensure a lower premium. Many insurers also want to measure it through the medical test exam. They will ask for necessary medical reports and upon this the premium rate will be fixed. In that case, if the report is positive from yours point of view, then you are going to get a good rate. In other hand, if a chronic disease is diagnosed after the test, you possibly end up having a higher premium rate. Some providers do not require this, but they will impose even higher premium rate as they are totally unknown about your health status.

The second concern is age. They assume that with age, the health deteriorates. This is actually true in most of the cases. The health does not respond as well as it used to be after 50s. At the age of over 60s, it becomes weaker and people usually lose the power and energy to live further. The older people usually suffer from at least few minor health issues if not major.

The other factors of fixing the premium of senior life insurance are bad habits and gender. The bad habits which directly harm the health will make the premium rate higher. You should leave all bad habits such as drinking, smoking to live a life with safety. Sometime women get a lower premium as their life expectancy is higher in comparing to men. You can consider it as gender discrimination, but there is nothing to do.

So, if you think you can control over any of the factors stated above, then you can lower the premium.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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