Have you ever thought why your life insurance premiums rising? There are many factors for that. Someone with good health and lifestyle, their life insurance is normally lower. On the contrary, if some body with bad health and poor life style, he will obviously be paying more for their life insurance premiums. It may be helpful to consider these factors in its depth so you can see the cause you may be paying more as premiums for your life insurance.
For the last decade, statistics have proved that the cost of term life insurance has been lowering for both man and women who don’t smoke. This decrease is the direct consequence of the longer life span during the same period of time.
By examining your risk levels, life insurance companies decide what sort of premium they will charge you. For instance, if the company believes that you will die soon and within the policy limits, you will be charged more for the policy. Age, health and lifestyle are among the major factors that are considered when pricing insurance premium.
Sex: Life expectancy of man is lower as compared to women. Thus, men will pay more that women for their life insurance premiums.
Age: The earlier someone gets some sort of life insurance, better the chances that the individual will get a lower and best rate as premium. Premium costs will increase as one gets older.
Medical conditions: if an individual has some sort of medical condition, this might factor heavily into how much premium the person will pay for his life insurance. Some examples include obesity, high level of cholesterol, smoking, diabetes and hypertension. These factors obviously affect the life expectancy levels. These are major points considered by insurance companies to calculate premiums to be paid.
Family medical history: Your premium cost may also be determined by your family medical history. Hereditary diseases like heart attack, cancer or diabetes that are found to be common in a family history will increase the life insurance costs although presently you don’t have any of these diseases.
Occupation: This is another factor that companies consider risky jobs like fire fighters. Risky recreational activities like auto racing and mountain climbing may also be included among.
When applying for life insurance coverage, give as much information as possible. Don’t hide any information about your health and lifestyle. In case you make a false statement, your policy can be cancelled. Thus it’s your loved ones who will pay for your negligence.