Situations of health
People with health problems will have to pay a greater premium than those who are not on any medicines. This is mostly due to the fact that those who are already afflicted with certain ailments have a higher likelihood of filing a claim.
Habits of life
People who habitually smoke and drink have an increased risk of developing life-threatening diseases. If you fall into this category, you'll have to pay a larger premium, often up to 50% greater than usual.
Age
The age of the policyholder is one of the most important factors in determining premiums. Because you are regarded to be at lower health risks while you are young, the cost of an insurance is lower when purchased at a young age. Young people are also likely to enjoy longer policy coverage and premium payment terms, resulting in higher revenue for insurers and lower premiums for young customers.
Gender
In the realm of insurance, premiums differ based on gender. In comparison to a male with the same profile and conditions, a female policyholder will be obliged to pay a lower premium. This is primarily due to the perception that men are more vulnerable and have a shorter life expectancy.
Period of the Policy
The lower the premium, the longer the policy is in effect. A long-term policy assures a steady stream of premiums for an insurance provider, which is why policies with longer coverage cost less.
Occupation
You will be paid a greater premium if you work in a high-risk business like construction, mining, or shipping. People who work in offices would pay a lower premium because they are less likely to be involved in an accident at work.
History of the family
Diabetes, for example, is seen as a hereditary disease. As a result, those with a family history of such diseases may be requested to pay a greater premium than others
Term of Premium Payment
When compared to those who pay the premium bi-annually, quarterly, or monthly, those who pay the premium annually save money. Annual payments save insurers regular administrative costs, allowing them to charge a lower rate than quarterly or monthly instalments.
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