Want nothing but the best for your family? Want to protect their future in case something happens to you? Life insurance is the best way of protecting your loved ones from unforeseen circumstances. As life is full of risks these days, it makes sense to take early measures or think about protecting your loved ones. However, people usually don’t know that the premiums are calculated on the basis of many aspects that have a direct link to the potential policy holder.
A lot of people conceive taking insurance policy as a complicated process. It is complicated because a person doesn’t have the right knowledge about it. When one knows about the types of factors that can influence the life insurance policy, he/she is able to make a better and informed decision. If you too are still in the dark and looking for answers on the factors that can increase the insurance premium, then you have come to the right place. In this blog, we will make you familiar with 7 aspects that influence your decision of life stage insurance planning. Without any wait, let’s explore those 7 crucial aspects.
1. The Age Of The Potential Policy Holder
This might not come as a surprise to you that age plays an important role in life insurance premiums. When a person chooses to get a life insurance policy in young age, the insurer doesn’t have to worry about writing a check to your family because you will be paying the premium for a very long time. This is why you should get a policy as early as possible because then the process would be much easier for you. but this doesn’t mean that you jump right into it when you passed out the college. But as soon as you make a family, you must think about getting the life insurance. The more you will delay it, the more your age will be of importance.
2. The Gender Of The Potential Policy Holder
After age, another thing that is the biggest determinant of pricing in life insurance is gender. The insurance providers make use of statistical models to determine how long a particular gender will stay around. If you will look at the facts yourselves, you will find that women (on an average) live five years longer than men. Based on this basis, women enjoy slightly lower premium rates as they will be around for a longer time than males. This is why, both men and women must get life insurance because it is essential for both the genders.
3. Lifestyle Of The Potential Policy Holder
If you are under the impression that the insurer will not ask about your lifestyle, then you are wrong. Your lifestyle is what makes you and has a direct effect on your health. If smoking and drinking are a part of your everyday life, then it will be a red flag for the insurance company. Due to this thing, a lot many people end up paying more premium for comparable coverage. If you are a non-smoker or non-drinker, you will get life insurance at the right insurance premium. So, you must reflect over your lifestyle choices and make amendments at the earliest to eliminate this factor.
4. Health Of The Potential Policy Holder
An important document that is a part of your life insurance policy is the copy of your medical exam. The insurance company makes it a point to get this document and after going through it, they offer you life insurance. In the medical report, your height, weight, blood pressure, cholesterol and other key metrics will be looked at. If you have diabetes or/and cholesterol, get it managed before getting the test so that you can get coverage at a competitive rate. If you are planning to get a life insurance in the future, you must work on getting healthier and doing well for your body. It might look like a hassle considering the modern lifestyle but it is essential, especially if you don’t want to end up with paying a high premium on your life insurance.
5. Profession Of The Potential Policy Holder
Next thing that comes under scrutiny is your profession. For life insurance, you may end up paying more premium if you are into a relatively dangerous profession, for example, mining, fishing or transportation. In case you like driving fast cars as a pastime or climbing tall mountains that too will be taken into consideration. Any high-risk activity increases the likelihood of the policy holder meets an early end, which is a big concern for the insurer.
6. Family Medical History Of The Potential Policy Holder
Gene pool is another thing that plays a vital role when one opts for the life insurance policy. If there’s a family history of strokes, diabetes, cancer or other serious medical conditions that will not be overlooked by the insurer. This is because the carriers are usually interested in conditions which your family members experienced or contributed to their premature death because there are chances that you might end up with the same issues yourself. You can’t fight your genes but can work on your health.
7. Driving Record Of The Potential Policy Holder
This one might come as a surprise, but there are many insurers who take a close look at a person’s driving record before initiating the policy process. They might or might not ask you about it but they can reach out to the Department of Motor Vehicle to know if you have violated any traffic rules. The time period of the last 3 to 5 years plays a major role.
Now, that you know about the factors that can influence your life insurance, work towards eliminating these issues. It will be totally worth the efforts. And once you get the life insurance, you will be carefree as you have made strong arrangement for the better future of your loved ones.