August 5th, 2010 by Jade Gould
| Tags: Insurance, Life Insurance
Age
- Your age plays a key role in how life insurance premiums are priced. The cost of the premium plus a certain amount of interest from investments must cover your expected lifespan. Therefore, the older you are, the more you’ll pay for insurance.
Sex
- Women tend to live longer than men, statistically speaking, with all other risk factors being equal. This means that women enjoy lower premium payments compared with men of the same age and risk class.
Health
- Your overall health plays a major role in whether you are insurable at all. A terminal illness, for example, would prevent you from obtaining insurance because there’s no way the insurance company could invest your premium dollars fast enough to recoup the loss it will suffer when you die.
Hobbies & Lifestyle
- Dangerous hobbies or a risky lifestyle can negatively impact your premiums. For example, skydivers will have a higher risk rating, and thus higher premiums, than nonskydivers. You can positively impact this factor by changing your lifestyle over time and reapplying for a new risk rating.
Occupation
- A dangerous occupation can increase the cost of insurance and affect the predicted premiums and ability to buy life insurance. Coal miners, for example, may not be able to obtain insurance under certain circumstances due to the nature of their profession.
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