How Are Premiums Calculated?

Life insurance premiums vary from person to person. Insurance companies consider many factors when determining the premium. These factors include:

• Age: Premiums generally increase with age as risk rates rise. Therefore, getting insurance at a younger age is more advantageous.
• Health Status: Chronic illnesses, past surgeries, or existing medical conditions can affect the premium amount. Maintaining a healthy lifestyle and having regular check-ups can help keep your premiums low.
• Lifestyle and Occupation: Habits like smoking or a risky occupation (such as a pilot or firefighter) can increase your premiums.
• Coverage Amount and Policy Term: The amount of coverage you want and the duration of the policy are the most significant factors directly affecting the premium.