Age is an
important factor that affects how much the life insurance policy will
cost. The reasoning behind this is simple. The younger you are, the
healthier you are with less chance of you passing away. The older you
are, the more your health is at risk and the chances of you passing away
are far more than a younger person. So the premiums on life insurance
will be much cheaper for a 24 year old man
than they would be for a man in his 60s. Gender is also given
importance since women generally tend to live longer than men. Premiums
for women could hence be cheaper than men.
The tenure of your insurance
This is also logical enough to understand. The longer you need to be covered, the more you will have to pay. There are different life insurance policies offered by insurance companies but with whole life insurance, your premiums will increase with time. The term period for your insurance can be anything from as less as 5 to 30 years.
Occupation
What you do for a living is also a consideration that affects what your life insurance policy will cost you. If your job is a dangerous one, your premiums will be higher than those working in safer jobs. For instance the premiums that a construction worker or a miner will have to pay will be higher than those working on simple office jobs or that of a teacher.
Lifestyle choices include factors such as whether or not you are a chain smoker, are addicted to or consume drugs or drink heavily. If you are involved with all or even one of these things, then you have the lifestyle the insurance companies will consider unstable. The premiums on insurance policies for smokers, drug addicts and drinkers will usually be higher. However, this problem can be overcome if you decide to quit. Suppose you quit smoking, after a year of being a nonsmoker, you will be considered a nonsmoker. You can review your insurance policy and get these premiums to decrease significantly.
You must be honest with the insurance company from whom you are buying the insurance policy. Suppose you indulge in dangerous and adventurous sports like mountain climbing, river rafting etc. and you accidently lose your life. The life insurance policy will not cover your loved ones but you will also be paying monthly for a policy that has proven to be useless in your time of need.
The tenure of your insurance
This is also logical enough to understand. The longer you need to be covered, the more you will have to pay. There are different life insurance policies offered by insurance companies but with whole life insurance, your premiums will increase with time. The term period for your insurance can be anything from as less as 5 to 30 years.
Occupation
What you do for a living is also a consideration that affects what your life insurance policy will cost you. If your job is a dangerous one, your premiums will be higher than those working in safer jobs. For instance the premiums that a construction worker or a miner will have to pay will be higher than those working on simple office jobs or that of a teacher.
Lifestyle choices include factors such as whether or not you are a chain smoker, are addicted to or consume drugs or drink heavily. If you are involved with all or even one of these things, then you have the lifestyle the insurance companies will consider unstable. The premiums on insurance policies for smokers, drug addicts and drinkers will usually be higher. However, this problem can be overcome if you decide to quit. Suppose you quit smoking, after a year of being a nonsmoker, you will be considered a nonsmoker. You can review your insurance policy and get these premiums to decrease significantly.
You must be honest with the insurance company from whom you are buying the insurance policy. Suppose you indulge in dangerous and adventurous sports like mountain climbing, river rafting etc. and you accidently lose your life. The life insurance policy will not cover your loved ones but you will also be paying monthly for a policy that has proven to be useless in your time of need.
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