The 9 most influencing factors in your life insurance
Have you ever wondered why life insurance premiums differ so much? Have you compared the life insurance premiums of your friends who may be the same age and gender as you and wondered why the difference in premiums? The common belief is that the only factors that influence a life insurance premium are age and gender, but there is much more to it.
The 9 main factors that affect life insurance premiums:
Hereditary diseases:
It is important to be perfectly honest about any hereditary illness when filling out the life insurance policy application form. However, this can increase your premium due to the increased risk associated with it. However, it is better to be sincere in advance than to repent later (as policies may be rejected if any of these illnesses occur later).
High-risk hobbies:
It is likely that people who practice adventure sports or high-risk recreation will be charged a higher premium; Again, this is due to the increased risk that the company assumes when the policy is issued. Examples of such activities are racing, skydiving, base jumping, paragliding, extreme rafting, etc.
High-risk professions:
People who have high-risk jobs are more likely to have higher premiums. If you are a pilot or a career pilot, your premium will be significantly higher than if you were a teacher or a writer, for example.
Smoking:
Smokers almost always end up paying a higher premium than non-smokers. Indeed, it has been scientifically proven that smoking predisposes you to a wide range of diseases, from cancer to stroke. This is something that is always checked at the time of the request and it is not a good idea to bypass your response in this regard only to reduce the premium, as this can lead to unwarranted complications later (as if you are going to a medical exam and it’s obvious, you’re a smoker).
Sex:
Women generally have lower life insurance premiums than men because they have a longer life expectancy rate.
The current state of health:
Most life insurance policies require you to undergo a medical examination at the time of application. Among other things, the parameters tested are blood pressure, cholesterol, etc. This could indicate the likelihood of developing illnesses in the future and could affect your life insurance premium if it is not optimal.
Excessive consumption of alcohol:
Heavy alcohol drinkers will attract a higher premium than others, and this is again for the same reasons mentioned above. It has been medically proven that excessive and regular consumption of alcohol can lead to a large number of illnesses later. However, being a social drinker won’t be a problem.
years:
It’s always a good idea to buy a life insurance policy as soon as possible as you get older, the more expensive your premium will be.
Duration of the policy:
The longer the duration of your contract, the higher your life insurance premium, since there is more risk of death for a longer period than for a shorter period.
If you take these factors into account from an early age and buy a life insurance policy as soon as possible, you could not only save a lot of money but also make sure you get the best coverage for life.