Hot News

8 factors that affect your life cover premium

on

If you have children, a bond, or a long-term partner, chances are, you’ve taken out life cover or, at the very least, considered it. If you’re thinking about getting life insurance, it’s a good idea to first understand how much you need and what factors affect your monthly premiums.

How much do you need?

There is no hard-and-fast rule about how much life cover you need, but your financial obligations and dependants are the major contributing factors. Ideally, you want at least as much to cover what you owe on your debts, such as your home and car loan. But there might be other aspects to consider, depending on your circumstances. For example, if you are the sole provider for your family, you’ll want to increase your cover so that your loved ones can continue to live on an amount similar to your monthly income. Also consider the future needs of your family, such as university tuition for your children or the retirement of your spouse.

Once you’ve figured out how much cover you need, it’s time to get life insurance quotes, and your insurance company will calculate your premiums based on a number of factors. Some of these include:

1. Your habits

Because insurance is all about calculating risks, habits such as smoking and excessive drinking will affect your premiums as well as the cover amount that you qualify for. These kinds of behaviours make you more likely to suffer an early death or illness and so hike up your monthly payments.[1]

2. Your weight

According to the World Health Organization, being overweight has serious effects on your health, such as higher risk of heart disease, stroke, type 2 diabetes, cancer and more.[2] If you’re overweight, all of these risks are taken into account when calculating your premium.

3. Family history

As certain conditions are hereditary, your family history is important to insurers. If your parents suffered from the likes of cardiovascular disease and diabetes, there is a higher chance that you too could suffer from these diseases.[3]

4. Your physical health

In addition to the health of your immediate family, your own health issues will affect your life cover premium. If you suffer from diabetes, asthma, and other chronic illnesses, your life expectancy is reduced, driving up your risk.[4]

5. Your mental health

Just as your physical well-being is taken into account, so is your mental health. If you are on medication for a mental condition and it’s under control, it may still influence the premiums you pay.[5]

6. Your job

If you’ve got a safe desk job, your career is probably not going to affect your insurance premium, although you may feel sometimes that the pressure of your work is a health risk. But if you engage in an occupation that involves danger, you can expect to pay a little more. These include jobs like piloting and even occupations where you spend a lot of time driving, because statistically, you’re more likely to be involved in an accident.[6]

7. Your hobbies

If you have a fairly safe job, that doesn’t mean you’re off the hook. If you’re an adrenalin junkie and love spending your weekends jumping out of planes or doing motor cross, you’ll need to tell your insurance company about it, and it will most likely raise your premiums.

8. Your age

Your premiums are likely to be higher the older you get, as you are considered to be a greater risk as you age.
As you can see, a lot goes into determining your life cover. At Dialdirect, it’s important that we provide our clients with life insurance quotes that reflect their lifestyles and that will protect their loved ones when they’re gone.

 

Long-term insurance policies are underwritten by 1Life Insurance Ltd an authorised financial services provider (FSP licence number: 24769).


[1] http://www.confused.com/life-insurance/guides/does-smoking-affect-my-life-insurance-premium

[2] http://www.who.int/features/qa/49/en/

[3] http://www.learnvest.com/knowledge-center/things-make-life-insurance-more-costly/2/

[4] http://www.learnvest.com/knowledge-center/things-make-life-insurance-more-costly/2/

[5] http://www.learnvest.com/knowledge-center/things-make-life-insurance-more-costly/2/

[6] http://www.mcmha.org/hazardous-occupations-affect-life-insurance/

5 Comments

  1. 臉部保養

    October 13, 2018 at 12:43 pm

    介紹肌膚保養系列中的洗顏産品。

  2. 醫學美容 獨家IELLIOS療程 cosmedicbook

    October 13, 2018 at 7:23 pm

    通過水光療程抑制黑色素細胞生長的成分注射到真皮層,減少黑色素形成,淡化黑斑色素沉澱,從而達到美白祛斑的效果 療程特色 :可配搭多元化產品來量身訂做不同療​​程計算機化規格,操作方便,容易控制可調節進針深度,精準注射於目標的肌膚層 每針的注射劑量相等,達到均勻注射 一次平均5點注射,可縮短療程時間 採用31號細針頭,幾乎看不到入針點 降低疼痛、瘀血、腫脹及不適感 使用靈活度高,可複合式搭配針劑,量身訂製療程

  3. 醫學美容 彈性 cosmetic.wiki

    October 16, 2018 at 10:28 pm

    京乃雪 【京乃雪保養】手作和漢植物淨顏玉 Natural Soap的商品介紹 京乃雪,京乃雪保養,手作和漢植物淨顏玉 Natural Soap

  4. 羅霉樂

    October 17, 2018 at 10:09 am

    恢復肌膚狀態,使肌膚潔淨、滋潤和水嫩的洗面皂。

  5. 醫學美容 粉餅 cosmetic.wiki

    October 19, 2018 at 9:34 pm

    too cool for school 【臉部保養系列】凍齡美肌保濕精華液 replenish hydra serum的商品介紹 too cool for school,臉部保養系列,凍齡美肌保濕精華液 replenish hydra serum

Leave a Reply

Your email address will not be published.