What factors affect my life insurance premiums?

Thinking about your own passing may seem morbid, but with everyday life being as unpredictable as it is, itís important to consider what will happen to those near and dear to you in the event of your death. Finding the right kind of life insurance cover for you and your family can seem rather daunting, but with straightforward insurance products, such as those provided by FRANK.NET, the process can actually be easy and understandable. Different kinds of cover are needed by different people, depending on their personal requirements and FRANK.NET prides itself on offering cover that meets those needs. There are certain factors that influence your life cover, so it's advisable that you know what they are before applying for a policy. Here's a simple breakdown of what you need to know.

Gender

Gender has a bearing on both your monthly premiums as well as your overall cover. Females, on average, tend to live longer than males, which usually means that life insurance cover for a male can cost more than for a female. Women can end up paying monthly premiums for a longer period of time, which usually entitles them to slightly lower rates than men.

Age

This is the no.1 factor considered when calculating life insurance. The older you are, the higher your monthly premiums are set to be. The younger you are when you sign up for a policy, the better, as you get the best rates when youíre young. This is because the chances are high that youíll be paying premiums for a long time before the insurance provider has to issue a pay-out. If you don't have dependants who rely on you financially, then it's not a necessity to get cover, but when you become responsible for the well-being of another person or take on a large amount of debt like taking out a home loan or buying an expensive car, it's a good idea to consider cover.

Health

The healthier you are, the lower your premiums are likely to be. At FRANK.NET, your BMI (body mass index), medical history and smoking and drinking habits are also taken into account to determine your risk profile. Being a smoker or heavy drinker can also increase your monthly rates, as the habit puts you at a higher risk of developing a range of illnesses and ailments that can contribute to an earlier death.

Lifestyle and hobbies

An extreme lifestyle that consists of many high-risk activities can also increase your monthly premiums. Each time you indulge in a particularly risky activity, there's an increased likelihood that you could injure yourself or die. What you do for a living can also potentially affect your premiums, especially if your profession is particularly dangerous. How you choose to live your life and the things you do can and will affect your monthly life insurance premiums.

There are many factors taken into account when your life insurance cover is calculated, many of which are beyond your control. It's helpful to prepare all the necessary information you require beforehand and to make sure it's all accurate ñ this will help the process run more smoothly. The most important thing though is to be honest with your insurance provider as the information you provide may be verified at claims stage. Notify the insurance provider of any changes in your lifestyle, such as if you start or quit smoking or change jobs, as these changes can affect your premiums and overall cover. Securing life insurance is not only an investment for your family, but it will also give you peace of mind while youíre still around.

Credits:
http://www.investopedia.com

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