The premium payments are very diverse ever since the insurance companies were established. As a matter of fact, it is rare to find any two people that are covered by the same life assurance companies paying the same amount of premiums. This can be better explained with the issue of diversity that is there. People are entirely different in nearly all aspects. Similarly, the premium charges are highly dependent on this diversity. Discussed below are some of the factors that the life insurance companies consider calculating premiums for their customers:
They old people have a lot of odds in comparison to the young ones. They are highly susceptible to attack by diseases. The question of death is also not far from them. This means that by covering them, the chances are that in no time they may find themselves beginning to compensate them. Therefore, just like in other best life insurance companies, the increase of chances of the risk occurring makes the premium payments super expensive. However, this is something that customers should understand to prevent them from feeling cheated.
It is a requirement for anyone that wishes to take a life cover to visit a health institution for a health report. There, they are diagnosed with any ailment condition that they may be suffering from. This makes sure that the life insurance company can easily predict how long the insured are likely to live. Whenever a person is diagnosed with ailment conditions, they are considered to be highly prone to death. Consequently, they are charged at high premium rates to cover the odds of sickness.
The weight of a person is likely to determine the viability of an individual to a disease. In fact, it indirectly indicates the health status of an individual. It is common for the weight of a sick person to be much minimum in comparison to that of a healthy person. Therefore, the life insurance companies consider measuring the weight of a person and compare
There are different types of jobs. While there are white collar jobs that are less risky, some manual jobs are too dangerous and could cause death anytime. These include quarry jobs, traffic and so on. Therefore, the premiums paid by the different people are different. Generally, the people that are involved in the risky jobs will be charged higher in comparison to the rest. This is to cover the risk of death that is at a high chance of occurring.
This is a significant measurement that determines the span of the insured person. Therefore, the insuring company insists that that the insured should go for screening and present the relevant medical documents so as to be covered. It is these documents that assure the company that the person is not at high chances of dying.
The habit of a person determines how long a person is likely to live. For instance, smokers and drunkards are exposed to many opportunistic diseases. Reliable scientific research reveals that their body parts are damaged by these substances. For example, the smokers are highly prone to catching lung infections. They are also prone to some malignant cases such as throat cancer, lung cancer and so on. At the same time drunkards are not any better, they are highly susceptible to liver cirrhosis and other serious diseases. Therefore, it takes the insurance company to know the details of the person that is seeking to be insured. This is the only way by which they can ascertain that they do not insure a person that will die the following year thus causing them losses.