Life insurance is an insurance policy that is taken on behalf of your life, which will benefit a named beneficiary, whom will most often be your spouse or children, in case of an unexpected demise. In certain instances, insurance companies adapt various policies and promotions to attract potential customers by means of awarding compensation in case of permanent disability, completions of the term of the policy…etc. At the same time, in order to maintain the policy, the insurer has to pay a premium which will be designated to you by the insurance company.
When you do some research, what you will see is that there is a marked difference between the premiums charged by different institutions as well as among different individuals insured through the same insurance company. Thus, before embarking on obtaining an insurance policy, it would be up to the buyer to select the best deal from many that are available. In order to do this, one should know what affects their premium and when can it rise above the norms.
Thus, some of the factors that control the life insurance rates are as follows.
When a person grows old, the premiums charged for life insurance would inevitably rise. This indicates the relative risk that is possessed by an older person than a younger person. It is possible to see a marked rise once a person reaches 60 years of age as the companies assesses such a person to suffer from age related medical illnesses, be accident prone as well as having deteriorating bodily functions among many others that they relate to age.
The measure would indicate a persons proneness to become obese and develop medical problems such as diabetes, heart disease…etc. As such, the insurance companies would attach a higher premium for such individuals as possessing an increased risk for their own life.
Past medical illnesses
Suffering from diabetes, hypertension, heart diseases…etc would not help in bringing down the insurance premium and would definitely set the rates at a higher level.
The profession will also make a person’s life insurance premium to fluctuate as certain professions such as diving instructors, stunt actors…etc would have an increased risk towards their life due to their profession.
Statistics related to your region would play a major role in deciding the insurance premium and certain disease conditions, weather patterns, morbidity mortality statistics, life expectancy…etc will play a part.
Having certain diseases among family members can affect the life insurance premiums as the companies will assess you as being having an increased risk of developing the same in the future.
Apart from these, your current medical fitness, being married or not…etc will also influence the final decision regarding the rates and if you are unfit or else single, you may need to be prepared to pay a higher rate than a person who is different.