3 Factors that Affect Life Insurance Premiums

  • Posted 03 Sep

3 Factors that Affect Life Insurance Premiums

When you apply for life insurance, you’re required to answer a series of questions regarding your health, occupation, medical history, and lifestyle plus other related matters. This is done in order for the insurance provider to tailor a life insurance policy that suits your specific needs and meets all your requirements.

Life insurance premiums and costs are decided on the basis of your, as well as your family’s (where relevant), lifestyle conditions. The insurance provider asks probing questions to determine your life expectancy so that you’re able to pay premiums that will help pay for your family for when you’re not physically there to do so yourself.


Factors that Affect Life Insurance Premiums


  1. Occupation. How much you earn dictates how much cover you can afford for life insurance. This is when you need to determine what you’re getting life insurance for – to cover your debts only or to provide for your family? This will determine largely, how much cover you put in place, and then how much you can afford to pay in monthly premiums.
  2. Mortgage and debts. If you want to make sure that your debts are taking care of as well as your family home, this will largely drive the type of cover you have in place. This will add to your overall premium and should be taken into consideration when reviewing life insurance quotes. Be realistic about what you can afford, but also make sure that the cover you have in place will adequately take care of everything once you’re gone.
  3. Health condition. Your health history is likely to have a big impact on your insurance premiums. Factors related to health like weight, diseases and smoking habits are big drivers when it comes to life insurance premiums. Higher weight and regular usage of nicotine may lead to a shorter lifespan in most people. For this reason, they are required to pay higher premiums so that a greater amount of money can be accumulated over what might be a shorter period of time. Other health related factors, such as your family health history, where the nature of which is more permanent than the ones mentioned above, might have greater impact on premiums. This could include a history of heart attacks, or breast cancer.


Non-modifiable health conditions or illnesses such as cardiac problems, diabetes, cancer etc. which may or not be historically present in the family of the client will lead to higher premiums as they might lead to shorter lifespan of the insured, as well as the client’s family members’ needs to pay for health bills, should they ever encounter such diseases themselves.

If you’re looking to buy a life insurance policy that is perfectly fitted for your family’s needs, chat with our experts today and find out what’s the best option for you.

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