9 Factors That Determine Your Term Life Insurance Rate!

Life Insurance is inevitable. We think of leading a happy and peaceful life; this is easily attainable if you earn good and save well for the future. Life and death both are unpredictable and to secure your family after a death we plan for life insurance policies. But simultaneously we need to decide the life insurance rate.

Life insurance policies are many but the term policies earn the highest returns. It all depends upon your salary how high or how low the premium is. Life insurance is one of the finest ways in which you can protect your loved ones.  Many people do not have a proper understanding of life insurance policies and how do they work. For good knowledge, any advisors can be called and the plans and actions can be implemented.

The conditions while deciding how much the premiums will come for your life insurance depends on many factors.  Learning about them will help you in deciding the proper plan for you.

Read Also: 10 Hidden facts of Term Insurance 



Factors Determining Life Insurance Rate:

The factors that determine your life insurance rate are discussed below:


#1: Age

The most important and the primary factor determining your life insurance rate is your age. The earlier you purchase a life insurance plan, the lower you need to pay your premiums. This is mainly because as old you become prone to diseases. The immunity of your body also decreases and hence the life insurance company is at high risk and asks for more. On the other side if you are planning to buy the plan at a lesser age you will pay a low premium.


#2: Gender

It might seem that there is no partiality between a male and a female and indeed that is true in this era but the life insurance company thinks quite differently. They think that females live longer than men and hence females pose a lesser risk of a claim. In this manner, the premiums for the females will always be lower than males for any life insurance company.


#3: Medical history of the family

The medical history of your family can become another chief factor in determining the life insurance rates or premiums. If you suffer from any chronic disease or some diseases like a heart attack or similar then you are enforced to pay higher premiums.

Medical history matters a lot so it is better that you keep yourself protected from any kind of disease and stay healthy. In short, we can say that staying healthy can help you save rates of life insurance.


#4: Policy term

The policy term is of various tenures and the term policies are also there. Here we can see that the policy term plays an important role in determining your life insurance rates. The longer the plan fewer premiums you need to pay.


#5: Smoking and Drinking

If you are a smoker or a drinker then it is probably a very high chance that you will have to pay higher rates for life insurance. This is certainly because the person who drinks or smokes is at higher risk of diseases and hence they are liable to pay more premiums.

It is a good suggestion to discard both smoking and drinking from your life as it is injurious to your health as well as wealth.


#6:  Current occupation

The current occupation of the person makes a lot of difference in deciding your premium rates. The fishermen, the coal miners, the industry laborers are likely to pay a higher premium as they are in the higher risk jobs.


#7: The platform used for buying the policy

The digitization is at peak and people prefer all online modes for any kind of transaction and hence buying a life insurance policy is no different. The most convenient way of the transaction is this one only. Paperwork or hard copy work is less used nowadays. If we take life insurance online, the premiums will be on the lower side.

The reason for the lower premium is that no administrative fees are applied and even no brokerage charge is applied.  So it is better to opt for the online mode rather than any other mode for buying life insurance.


#8: The frequency of premium paid

The frequency at which the person pays the premiums makes a good amount of difference in the rates. The premiums are made half-yearly, monthly as well as yearly. So, if you pay the premium every month you are liable to pay more rates whereas the premium paid annually is on the lower side.

Opt for the annual premium payout to save more.


#9: Obesity

Another factor that can seriously affect the rates of life insurance is the obesity of a person. The weight gain increases the premiums and so losing weight will be beneficial for your health as well as saving your rates too. Obesity can be a serious concern while deciding on buying life insurance.

Read Also: 6 Ways to Measure How Much Life Insurance Do You Need?



Final words!

Life insurance policies vary from company to company but the norms and the conditions remain the same. Above some points have been discussed which can make you clear about the factors that can affect the rates of life insurance. The term insurance is the best one which yields maximum result and it is always better to go for term insurance rather than any other ones.

Another caution which needs to be seriously taken care of in your mind is the durability and credibility of the insurer (life insurance Company). The amount or the benefit that you are going to earn will be from your hard-earned money and hence it should be in the right hands. The better is the rating of the company; the more good returns are likely to be made.

Many insurance experts are sitting back who can provide you with a good piece of advice in deciding the best policy plan and also in determining the best-suited company for you. Make a wise choice always and lead a happy life.  Look forward to and enjoy the best plans in your affordable range.