Factors that determine the life insurance premiums
There are various factors that can determine the life insurance rate such as lifestyle and health history has a significant impact on the life insurance premiums. Several of the factors are under the insured’s control while others are under the insurer’s control. Both policyholders and insurers have to consider about the age group, weight, smoking or nicotine use, and health history to make a smooth deal. Let’s find how these factors determine the life insurance rates.
Age:
First of all is the age group which is an important determiner of the insurance rates. If you are younger you can purchase your insurance policy at a lower rate than the senior person. The best time to purchase life insurance is young age. Your life insurance policy cannot be cancelled unless you fail to pay your premium regularly. So, having an insurance policy in the early life is better than later life.
Weight:
Weight is another important factor that determines the rate of premiums. People who are with overweight they have to higher premiums for life insurance. Over the years scientific studies have proven that people with overweight have a shorter lifespan. Insurance companies assess the factor as a higher risk for them. This is why they charge more premiums for the overweight customers.
Smoking/Nicotine Use:
Insurance companies pay great attention to the customers’ smoking and nicotine use. And it is a common rule in the insurance companies that smokers and drug users have to pay more premiums than the non-smokers. Even many insurance companies require that smokers have to quit smoking for at least one year before purchasing any insurance policy.
Health History:
Health history is a dominant factor that determines the rate of insurance premiums. Your family’s medical history can determine that which premium rate is appropriate for you. Insurance companies emphasize on the heart diseases, diabetes, and cancer to offer an insurance policy.