In the last decades, life insurance transitioned from a luxury to a necessity. Given the instability of the global economy, it is essential for responsible adults to buy life insurance in order to make sure that their families will always be protected from money problems, even in the worst situations. However, despite the fact that life insurance is a popular concept around the world, most people are lost when it comes to choosing the right policy. There are certain lifestyle factors which can have a big impact on the life insurance premiums but few people are aware of them. Lets take a closer look at the standard policies in order to see which life insurance factors have the most influence on the premiums.
This is by far the most relevant life insurance factor. In order to get low premiums, you need to buy a life insurance policy as sooner as possible. The older you are, the higher the premiums will be. This is based on the fact that life insurance companies calculate their premiums based on the level of death risk presented by each individual. Since older people have more health problems, they present a higher risk, which is why insurance companies charge them more money.
As we mentioned above, the premiums are usually established according to the death risk presented by each person. Needless to say that people who are suffering from life threatening medical conditions end up paying more money for life insurance. Both the present health and the medical history are relevant life insurance factors. If you suffered from a serious medical condition in the past, you need to inform your insurance company, even if you are completely healed now. Insurance companies love to dig into the past of their clients and they will try to use any information in order to avoid paying the benefits. It is not uncommon for such companies to require a medical history of your family in order to see whether or not you are susceptible of developing genetic conditions.
When trying to calculate the premiums of an individual, life insurance employees will also make an analysis of that person’s lifestyle. Unhealthy habits such as smoking or drinking can increase your premiums. Some insurers even consider your occupation and your weight. The best thing to do is be honest about all the aspects of your life. Don’ fool yourself into believing that you can lower your premiums by saying a couple of white lies. Those white lies are relevant life insurance factors which could affect your family’s future because the insurance company can refuse to pay the benefits if they consider that you didn’t obey by the full disclosure clause.