Life insurance is a great way to financially protect your loved ones, but it’s also a great investment. Over a few years, even a slightly lower life insurance premium can generate big savings.
Currently, life insurance company like Walnut and Sunlife works with many variables to establish different policyholder profiles.
The following are some key factors that affect the life Insurance premium. Some of these criteria are beyond your control, while you can change others with simple lifestyle choices. (For related information, read about the benefit of life insurance).
Life insurance: protection from what and for whom?
The focus of a life insurance policy is to protect against risks that may occur in the future. Among the risks are death and disability, whether from natural causes or accidents or illnesses.
The contracting of life insurance is indicated, in particular, for three groups of people:
- individuals with dependents;
- people who depend on their work;
- those aimed at protecting against serious illnesses.
After knowing the importance of insurance and for whom it is best suited, we will present the four main factors that influence the price of life insurance:
1. Age
A person’s life years are relevant for accepting and even restricting life insurance.
The younger you are, the lower the risk of having serious health problems. This reduces the insurance company’s risk of making a short-term payment. Probably, the older you are when you take out life insurance, the more expensive the premium will be.
Some insurance companies offer alternative plans for people between 60 and 80 years old. This way, you guarantee more attractive rates,and benefits.
2. Profession: How does work affect the value of a life insurance premium?
Your job can play an aggravating role in determining the price of your life insurance. But generally, this only happens if you work in a field that is considered particularly dangerous. Some hazardous occupations that could affect your premium include the construction worker, the airline pilot, or the truck driver.
They are noble professions for society, but they are subject to constant loss, death, or disability threats.
3. Health Conditions: Can BMI, Smoking, and Medical History Change the Calculation?
Yes. Health conditions and habits are among the elements that insurers consider when determining a life insurance premium.
Smoking is usually one of the main factors that make life insurance premiums more expensive. This is due to the risk that this behavior represents for your health, increasing the possibility of dying from tobacco-related problems.
4. Family History: Heredity and Disease Affect Price?
Your health history refers to incidents related to your health that you have dealt with in the past. For example, if you have dealt with a serious illness, such as a heart condition or cancer, this will be part of your health history.
Lying or withholding information will never be the solution. When taking out the insurance, the insurer will ask questions regarding family history. You must report hereditary or genetic disorders and illnesses.
In case of death, if it is found that the insured had a pre-existing illness, the family may not receive the insurance.
How much does life insurance cost?
We must remember that with life insurance, the risks related to the person are transferred to the insurance company.
So don’t wonder how much you will pay for life insurance. Check out the policy advisor website to Compare and buy from Canada’s 20 best insurers.