Premiums & Exclusions

If you have never had a life insurance policy before then you may be unaware as to the factors that can affect the cost of your premiums. Factors can include the length of the policy and the sum assured, and your health and life style can have an equally important part to play.

Factors that will affect your premiums
Some factors that may affect you premiums will be out with your control. These can include your age as premiums tend to increase as you get older, and gender as premiums for women tend to be lower. Your occupation, and the length and amount of cover that you require, will also be factored in. The majority of insurers will also take into account your height and weight along with your current lifestyle.

One of the biggest health factors affecting your premium is whether you are classed as a smoker. Those who smoke are believed to be at an increased risk of health complications and will therefore be charged a higher premium. You will also be asked a series of questions in relation to your medical history and that of your immediate family. This is to allow the insurance company to judge the risk factor involved in insuring you. It is important to always answer the questions asked truthfully as you could void your life insurance if you are untruthful.

Risk factors
Risk factors will affect the premium costs since there are numerous ways in which they can make you more of a hazard to insure. The main risk factors are typically life style and occupation. It is important to understand that many insurance companies see all risks differently so whole of market comparison is often prudent.

Occupations that are considered to be more risky than others include working at heights, fishermen, individuals in the military and pilots. In addition, there are particular past-times that represent more of a risk to insurers. These may include motor sports, bungee-jumping or snow activities such as skiing or snowboarding.

Similarly, smoking and holding a poor medical history are also considered to increase the risk factor in providing you with life insurance. Conditions measured may include cancer, diabetes, bowel conditions and raised blood pressure.

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