Top 07 Reasons Why You Should Pay Higher Life Insurance Premiums Than Others

Life Insurance Premiums

If you’re just starting out looking for life insurance plans, you might be curious as to how much money you’ll be paying for insurance coverage. There are many factors that determine the premium applicable to you and it can be very confusing at times to understand why you pay a higher price than others for a life insurance plan.

Let’s take a look at the factors that could be the cause of a higher life insurance premium for you:

1. Higher age

Life insurance premiums depend on age – the older you get, the more you pay. If you buy an insurance policy at a younger age, you will pay lower premiums for the term of the policy than some older premiums. how? Because with age, there is a greater chance of your health deteriorating, and the pre-insured event may occur dramatically.

2. Gender

Women tend to pay less for the life insurance plans. Although this is not due to their preference more, but they generally tend to live longer lives than men. Several studies have shown that women outlive men by five to seven years.

3. Your lifestyle habits include smoking

Because of the proven link between smoking and diseases such as lung and throat cancer, smokers statistically live shorter lives, and therefore pay higher life insurance premiums. So, if you want to light up, you are at a higher risk of all kinds of health ailments, and thus it is a red flag for insurance companies.

4. Choose a higher amount guaranteed or longer policy term

The higher the guaranteed amount and the longer the policy, the more you will have to pay for it. In simple words, this is because your risk of death is higher for a policy that covers you for 30 years than for a policy that covers 10 years.

Also, the higher the guaranteed amount that will be paid to your candidates, the more you will be charged for coverage.

5. You do not buy the product online but from the distribution agent

As competition intensifies, insurance companies are offering cheaper premiums than offline policies to create online spaces. Most online life insurance plans are about 30-40% cheaper premiums compared to offline plans. This is because the purchase occurs directly between the insurance company and the customer which reduces the cost of paperwork and agent commission.

So, if you are buying life insurance plans from an agent rather than online, be prepared to pay higher premiums.

6. Counter-offer based on the representations made in the offer form Hobbies

If your favorite hobbies are treacherous mountain climbing and racing cars or you engage in dangerous or extreme hobbies, you will probably have to put in more money to get a bigger premium. This is because when you engage in activities, there are more risks to your life – which is a major concern for insurance companies.

Occupation: Some occupations are considered more dangerous than others. For example, pilots, soldiers, fishermen, gas industry workers, and miners can expect to pay more than those who work in a safer environment, such as teachers, office goers, or shop workers.

Country of travel: The insurance company is not interested in your latest family vacation to Switzerland, but whether you are anywhere that may pose a potential risk. For example, if you have traveled to a country with a high level of tropical disease or HIV infection. Also, if you travel abroad regularly for work. This may increase your premium.

7. The corresponding offer from the company based on the medical investigation You are not fit

If you weigh more than you should, lead a sedentary lifestyle, or your medical reports show negative signs. You are at higher risk and therefore charged higher premiums than an active person of a suitable body weight.

Your medical history isn’t the best: Pre-existing medical conditions can also raise your premium for life insurance plans. It’s simple basic insurance: For people with medical conditions. Their insurance is more expensive because of the possibility that they will need more tests, diagnoses, medication, treatment, and other expenses due to their health condition.

8. Your family history shows a genetic disease

You may be healthy, but then your family history shows diabetes, cancer, heart disease, high blood pressure — or dozens of other conditions. For the insurance company, this means that you are at a higher risk because you may inherit the same medical conditions and, therefore, the higher premium.

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