7 Reasons Why You Have To Pay Higher Premium For Life Insurance Than Others
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Getting a robust life insurance plan is one of the best ways to invest your money and contribute towards the financial security and stability of your family, especially in your absence. Several factors affect the premium rates of a life insurance plan. Lack of knowledge about them may lead to confusion regarding why you may pay a higher premium for life insurance than others.
7 Common Reasons Why Your Life Insurance Premium Is Higher Than Others
Following are some common reasons which can inflate your life insurance premium in comparison to others -
Age
Your age is a huge contributing factor to your premium rate. Plus, it is one of the most common reasons why one may pay more than the regular premium rate. The older you get, the more you will get charged for premium. This is because there are more risks involved as you age more. This is also why it is best to buy a life insurance plan as early on in life, as possible.
Health Concerns
Medical check-ups are a mandatory part of all life insurance applications. Everything is looked out for- from the basics like blood pressure levels to complex illnesses and diseases. If the applicant is suffering, they have to pay a higher rate than usual.
Smoking Habit
Smoking is undoubtedly injurious to your health. Non-smokers are usually charged a lower premium rate. This is because it can lead to multiple health concerns. If you quit smoking after the issuance of your policy you choose to change your status, if possible.
Gender
Women are usually charged lower premium rates than men. The primary reason for this is because studies that show women outlive men.
Failing to Compare Plans
The world is increasingly shifting towards a virtual sphere and life insurance companies are also not an exception. Online plans usually offer cheaper premiums. This is mostly because there is no paperwork or middleman involved in the purchase. Also, you may miss out on good and affordable plans if you fail to compare the available plans online.
Occupation
Several occupations involve higher risks than others. This is also a contributing factor to being charged with higher premiums.
Family Health History
Although a relatively minor factor, your family health history may still be involved in your getting a higher premium rate. If there are records of terminal or critical illnesses in your family, you may be asked to get tested for the same or directly get charged higher.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
