Factors Affecting Life Insurance Premium

Investment in life insurance is must to protect your loved ones and life insurance premiums are based on various factors. Sometimes, such premiums seem difficult to understand but once you get an idea about the basics, then you realize that simple lifestyle can affect the amount you pay for term insurance. Life insurance companies in India have different levels of classification and each insurer has set different guidelines for different segments.

Your health and age are two important factors when it comes to deciding the term insurance premium. As compared to older people, young people pay much less premium amount. The difference is just because the projected time which the insurance premiums will be paid is more for a younger person. Insurance companies in India consider these factors when setting the premiums.

Your health plays a key role while finalizing the term insurance premiums. A person with a good health record, like has normal blood pressure; balanced weight and normal triglyceride & cholesterol levels will pay less as compared to a person who has health issues such as high blood pressure or diabetes.

Smokers pay more because they have the greater risk of stroke, cancer, and cardiovascular disease. In case you smoke or have health issues when you buy your policy and you then quit smoking or become healthier, you can revisit your insurance plan and can be transferred to a better one. So, policyholders have to pay lower life insurance premiums online.

There are some other factors like your profession which can affect your premiums. If your job includes high-risk activities o you travel extensively or have any criminal record, then you have to pay higher premiums as all these professions increase your risk level of injury and death.

Following a healthy lifestyle is the best way to lower your premiums. The coverage you want will also leave an impact on your life insurance premiums.