If you have been looking for a life insurance policy and are curious as to how the insurance companies dictate premium pricing, read below!
Your age happens to be the most predominant factor that dictates the rate of your life insurance premiums. It is an established fact that policyholders who are younger in age are required to pay a lower rate of premiums. The logic behind this determinant is that the older you are, the more likely you are to pass away.
Your Health History
The life insurance policy underwriting process factors in your health history as well. The insurance company may require you to complete a medical exam in order to know more about the current status of your health as well as demand copies of your health records before issuing you a policy. This is done so the underwriter has clear insight into the history of any health conditions that you have had, in particular, illnesses that are more serious, like heart diseases, cancer, etc. This could increase your insurance premiums. Through the medical exam, details like your weight, your blood pressure, your cholesterol levels, and other such specifications are also counted for in the overall underwriting decision.
Your Family’s Health History
The insurance company will also look into your family’s history of illnesses, especially if there have been cases of hereditary diseases. This could affect your premiums if more than one immediate family member has a history of poor health.
One of the most important determinants that will dictate your insurance premiums is the kind of policy that you have opted for. The particularities of the life insurance policy that you have settled on will play their hand on the premium rates. Policies that have larger face amounts or are in force for a longer period of time tend to be more expensive than policies with smaller face amounts or shorter term policies. Further, permanent insurance is generally more expensive than term insurance.
The fact of the matter is that some jobs are riskier than others, simple as that. These jobs could be that of logging workers, fishermen, aircraft pilots, and the like. In such cases, insurance proceedings will take your occupation into account as an important determinant for your policy and as well as a part of your application process itself. Hence, your life insurance premiums can be relatively higher if you happen to have an occupation that necessitates you taking regular risks in the course of the job. This rule would also apply to people whose jobs expose them to harmful and toxic chemicals and requires them to do physically dangerous tasks on the daily.
If you are looking for a reputable name for a life insurance broker in Oakville, you can rely on the name of Stewart Financial Insurance for the expert consultancy and associated services in this domain.