FAQs

Which Factors Influence Your Life Insurance Premiums?

Life insurance plans are ranked among the best financial instruments to secure your family’s future against life’s uncertainties. The premise of life insurance coverage is simple – you select an insurance coverage based on your financial needs and agree to pay a specific amount of money as premium to the insurance company. The amount of premium payable also depends upon other factors such as –

1. Age

The primary factor that influences the premium payable under a life insurance policy is the age of the life insured. From the perspective of the insurance company, individuals in their 20s or 30s have a higher chance of continuing the life insurance policy coverage for more years compared to those in their 40s and onwards. Such individuals are also less likely to have any age-related health condition or pass away prematurely. Insurance companies, thus, consider these individuals as less of a liability and may offer them low premiums. It is advisable, therefore, to purchase a life insurance plan early on in your career so that your policy may incur the lowest possible premium payable.

2. Gender

Your gender may also affect the amount of life insurance premium payable. This rationale is based on scientific and statistical evidence, which states that women have a higher average life span than men (females live an average of 5 years more than males). This, in turn, translates to women remaining invested in their insurance policies longer than men. In other words, women may opt for life insurance coverage at lower premiums than males.

3. Medical Examination

The life insurance company may ask the policy buyer to undertake a complete medical examination before approving their insurance coverage. The findings of this medical examination may shed light on your current physical health and raise any flags about potential illnesses that you may contract in the future. Therefore, the results of the medical exam play a crucial role in determining the amount of premium you may have to pay towards your life insurance policy.

4. Family History

Your life insurance premium may also vary based on the fact that you have any health conditions that are considered hereditary. Such health conditions tend to run in the family. There are other conditions and health ailments that may not be considered hereditary but have a higher chance of affecting multiple members of a family (because of shared lifestyle choices.) Such health risks are reflected in the family medical history and have a crucial role to play in determining your life insurance premium payable.

5. Use of Tobacco

Your smoking habits may significantly affect your life insurance premiums. Research shows that individuals who smoke are more likely to develop various health ailments, including respiratory and cardiovascular complications. Also, smokers have a higher mortality rate than non-smokers. The life insurance premiums for smokers reflect these risk factors and may be higher than that for non-smokers.

At Canara HSBC Life Insurance, we offer iSelect Smart360 Term Plan, which offers comprehensive life insurance protection to you and your loved ones in the form of pure life coverage, in-built enhanced coverage options, child support, accidental death and total disability benefits.