07 Mar What Factors Are Considered in a Life Insurance Quote

Posted at 13:35h in Life Insurance by

When applying for life insurance, you might wonder what insurance companies consider when creating your quote. Insurance companies take a range of details into account when preparing a quote, including gender, age, and medical history. Read on for a detailed overview of what goes into life insurance quote calculations. Despite popular belief, they do not just think of a number and double it.

Personal details

Insurance companies take personal details into account. These details include:

  • Age: Younger people often receive lower premiums compared to older people, as they’re less likely to receive a payout from low chances of death, especially in term life insurance.
  • Gender: Did you know that statistically, men are more likely to live shorter lives than women? This is because of gender differences in health occupations– men are more likely to smoke, drink more alcohol, and use drugs than women.
  • Medical history: Pre-existing medical conditions, like cancer, or a history of high-risk activities like smoking can significantly increase your premium, as companies are more likely to have to pay out. Being overweight or obese could increase your risk of certain health problems, potentially affecting your premium.
  • Occupation: High-risk professions, like pilots, construction workers, or miners, have to pay higher premiums. Also, certain dangerous hobbies might influence this. Bungee jumpers, beware!
  • Family history: A family history of certain illnesses might also increase your premiums.
  • Driving habits: That’s right–multiple speeding tickets indicate a higher likelihood of you getting an accident, driving up premiums.

Policy details

Interestingly, the higher your desired coverage, the higher the premium. Policy type also influences how much you have to pay–term life insurance is cheaper because of its shorter duration, while whole life insurance covers the rest of your life.

In addition, if you choose a lump sum payout, it’ll be cheaper than choosing a benefit payout that manifests as a steady stream of income over time. Also, adding a disability benefit or critical illness cover also increases your income.

What Factors Are Considered in a Life Insurance Quote

Now that you understand what influences your premiums, it’s time to get in touch with a life insurance professional to get an in-depth quote tailored to your lifestyle. Contact Credit Boost today to discover how much you’ll pay for life insurance.