Factors Guiding the Premium of Your Life Insurance Plans

Buying a life insurance plan can be a tricky process. Do know that there are certain vital aspects of your life insurance application form that can either reduce or increase the premium payable. Instead of getting confused with the complexities of insurance plans, it’s time to understand the factors that guide your premiums. Once you get a hang of how to get a lucrative plan with a premium that’s well within your budget, you’ll find it simple to freeze your buy.

Read on to know more about the vital factors of consideration for calculating the premium of your next life insurance policy.  

  1. Age matters

The most important determinant of the premium of your life insurance plan is your age. The higher your age, them more is the premium to be paid. Young policyholders find themselves at an advantage in this case as they have much lower premiums to pay. If you choose to log in here you can read about the importance of age, gender, and other factors that can impact your payout. With age, the risks linked with your policy increases, thereby increasing the amount of premium that you need to pay. 

2. Gender can be a concern

Women have a tendency of outliving their male counterparts. In the United States, the life expectancy of women, on average, is higher by a small percentage when compared to that of men. This effectively means that men would have to pay a higher premium than those belonging to the female gender. 

3. Health records and history

Your insurance company may ask for the reports of different medical examinations before agreeing to issue a policy. In case you are not keen to go through the tests then you may furnish the reports of recently conducted medical examination to provide a clear picture of your health condition. The premium payable will increase if you’re diagnosed for or are already suffering from illnesses like cancer or heart diseases. The company you’re negotiating with will also decide basis your cholesterol levels, weight, blood pressure, and several other health metrics that show what their future risks would be like. 

4. Genetic health history

You may not be diagnosed with any health issues but that’s not all. The instances of illnesses in your family matters too. In case your parents or grandparents have a history of specific hereditary diseases them your premium will go up as well. Your cost of coverage would increase by quite an extent. 

5. Smoking

The health risks related to smoking include potentially fatal health problems like cancer. This will add to the premium rate as the policyholder will be exposed to more health problems than non-smokers. In case you no longer smoke but used to earlier then your premium will decrease by a small amount only. This is in comparison to the applicable rate for smokers. 

Way Forward

One of the primary areas of concern lies in understanding the calculation of the life insurance premium to protect the financial interests of your loved ones. Get your hands on an online premium calculator. Buy a good life insurance plan to help your family when you’re no longer around to fend for them.