We take a look at some of the factors which help insurers determine your policy cost.
1. Age
Premiums increase as you grow older because of your deteriorating health.
It's worth considering an insurance plan when you're young to lock in a cheaper premium and securing coverage before you develop any health conditions.
2. Gender
Men are more likely to have higher life insurance premiums compared to women because statistics show that men have a shorter life expectancy than women¹.
3. Smoking habits
Smokers are likely to pay more for their life insurance premiums due to the health risks tied to smoking.
4. Health status
High blood pressure or other health issues might be a sign of future problems. For example, if you're overweight, you're at a higher risk of weight-related health issues such as diabetes and heart disease.
This may then increase your life insurance premiums.
5. Family history
Serious illnesses such as heart diseases and cancer may be hereditary.
If there's such history among your family members, you may find yourself paying higher life insurance premiums.
6. Occupation
For certain types of plans, insurers may ask what kind of industry you are working in.
For example, a construction foreman's life insurance premiums may be higher compared to a desk-bound office worker due to a higher risk of accident at work.
Are you surprised by any of these factors?
¹ http://www.singstat.gov.sg/statistics/visualising-data/charts/life-expectancy-at-birth
This article is meant to be a guide. Please seek advice from a Financial Adviser Representative or obtain an accurate quote from your insurer.
