Determining Your Life Insurance Premium

When you’re purchasing life insurance, you don’t have much say about your insurance premium. It’s decided by the company and your only decision is whether or not to accept their offer.

However, there are some known factors that go into determining the premium. While you can’t control some of them, it will help you fill out your application and talk to the company intelligently if you know what they’re looking for.

Factors You Can’t Control

Age is a primary factor the helps determine your life insurance premium. Younger people will have the best premiums, as older people have a higher risk of dying.

Gender also contributes to your premium. Women usually go to the doctor more often than men, so they catch dangerous conditions earlier, and they typically live longer, so they will pay less for insurance.

Your health history also goes a long way when a insurance company is figuring out your premium. Any diseases you’ve had or have currently, as well as your family history of disease, are all contributing factors. It may be tempting to stretch the truth about your health history when applying for insurance. Doing this, however, puts you at risk for policy cancellation if the company finds out.

Showing that you have recovered from a life-threatening or serious condition, like cancer, or that you are taking care of something chronic, like diabetes, can help lower your premium, depending on the company and type of insurance you’re applying for.

The insurance company will also want to know if you have anything in your past that indicates you might engaged in risky behavior. This includes anything from bankruptcy filings to mental illness. Any risk you’ve demonstrated in the past will cause you to pay higher premiums.

Factors You Can Control

If you’re a smoker, you will pay more for insurance than a non-smoker. Note that this normally pertains to people who smoke regularly and not to those who smoke cigars or pipe tobacco occasionally with their friends.

In addition, your general physical condition, especially your weight, contributes to your life insurance premium. If you are over or under weight for your height, you will pay more. Those with a low-average weight will have the best premium.

What you do for a living and what you do for fun also help determine your premium. If your job is dangerous or you have potentially lethal hobbies (like extreme sports) you will pay more for your life insurance than an accountant who likes to read.

Finally, the amount of foreign travel, as well as the places you’ve travelled to and how long you’ve stayed there, also influence your life insurance premium. If you travel frequently and spend a lot of time overseas, your life insurance will cost more.

Purchasing Life Insurance

Hopefully, knowing these factors will help you as you seek the life insurance and life insurance premium that is right for you, your family, and your circumstances. If you have questions about how your particular insurance company handles one of the issues mentioned above, be sure to ask about it before you purchase the insurance.

Lower Your Car Insurance Premium By Following A Few Tips

Saving money on car insurance premiums would seem to be ideal in these hard times. Competition has affected the auto insurance market too and the insurance companies are offering ways to make your insurance cheaper to stay ahead. Make the most of it along with making a few marked changes so that you do not end up paying high premiums.

Look around for good insurance quotes: All companies do not charge the same premiums so it would be a good idea to shop around and find companies offering you insurance at lower premiums by way of discounts and after estimating your risk factors. Browse online too and look for good discounts being offered.

A Driver’s Education Course would help: This course is usually a day long and costs about $100. This course will actually teach you how to lower your car insurance premiums. The money you pay for the course will be substantiated in a big way by the huge savings you will make.

Safety features lower premiums: Adding safety features to your existing vehicle will also ensure that premiums are less. Features like good anti-lock brakes, electronic seat belts and air bags on either side would be considered to be safety features by the insurance company and they will reduce the premiums charged. This is a ‘win-win’ situation as adding these will mean more safety for you in case of an accident.

Increase your credit course: Your car insurance premiums are based on your credit ratings. When you increase your credit rating make sure to let your insurance provider know and negotiate a lower rate based on this.

Make your car burglar-proof: If you add anti-theft devices like an alarm, or others that can make your car more secure, insurance companies will consider giving you lower rates. So, you pay less plus make your car more secure.

Fuel efficient cars save on insurance: Cars that are fuel efficient or hybrid are environment friendly and hence cost less when it comes to car insurance premiums. This will also save your monthly expenditure on fuel.

Club all insurance amounts: If you own other vehicles, another car, two-wheeler, homeowners, renters or life insurance, calculate your savings if you purchase insurance from the same company. Chances are they will give you a good deal.

Avoid buying fancy cars or sports cars: If you want to slash the payment made for car insurance, then avoid buying flashy models or sports models. These car models are attached to high insurance premiums that go well above the budget. In fact it would be a good idea to consult your provider about the insurance premium before you buy a new model of car.

If high car insurance premiums on your vehicle are going above your budget, then try the above mentioned ways to bring them down. It may require you to spend further but will save money in the long run. The further spending makes you safer on the road so you are actually paying to stay safe. Car insurance is necessary, but should not cost you the earth.

What Affects The Costs Of Health Insurance Premiums?

If you are in the market to purchase a health insurance policy, you may be baffled at the array of prices of similar policies. There are a number of factors that determine the premiums on your health insurance policy. Each health insurance company will have their own actuarial team that determines the prices and classes of risks for each applicant. The applicants risk is a large part in what determines their risk class, but there are other aspects which causes fluctuation in premium prices.

One of the major factors that can raise health insurance premiums is the use of tobacco. Tobacco has been known to cause a number of health ailments that includes cancer. This factor can significantly increase the cost of health insurance. Knowing that cancer and smoking will decrease the average lifespan of a person, insurance premiums will rise. In some cases, health insurers will provide an incentive to help the insured quit smoking and cover smoking cessation products including nicotine gum, the patch, etc.

To qualify for health insurance, the applicant must be in reasonable health as well. This includes a proper height, weight and body mass index. People seeking coverage with a high body mass index, will have elevated premiums compared to those with an average BMI. Some insurance companies will not insure an obese person as it is not considered an insurable risk. Applicants looking to have the lower end of the premiums should be in the best health possible prior to applying for coverage.

An applicants age can have an ample impact on the price of coverage. The majority of younger people have minor issues with health issues. These may include common colds, a flu, ear infections, small accidents, etc. As a person ages, the likelihood of that person going to the doctor, needing critical care or becoming diagnosed with a chronic disease increases. The cost of major health issues becomes riskier for the company to insure. This is a direct result of increasing premiums as the person ages.

Pre-existing conditions for applicants will also raise the premiums on health insurance costs. Pre-existing conditions require more visits to a practitioner and greater risks for the insurance company to cover related claims to the pre-existing condition. Some insurance companies will only cover certain aspects of the pre-existing condition or won’t cover anything at all.

Another factor that may increase an applicant for health insurance premiums would be their gender. Unlike life insurance, women usually pay higher premiums than men for coverage. The reasoning behind this is due to the fact that women go to the doctor more often, need an OB/GYN specialist, take more prescription drugs, have maternity costs and are subjected to certain chronic diseases. The average cost to deliver a baby range anywhere between $10k-$15K of which doesn’t include the prenatal and postnatal medical care.

Other risks that the insurance companies factor in when determining premiums for the applicant are their lifestyle choices. These can range from a number of different topics including their profession, marital status, where they live and more. Insurance companies will take in all factors when determining a reasonable cost for insurance. For obvious reasons, a race car driver will be a much higher risk than an accountant. Insurance companies also are aware that married couples will live longer than single people. Other factors including the area code in which the applicant lives will be represented in the premiums. People that live in the same areas, tend to have similar eating, exercise and living habits.

Insurance premiums can be expensive, but insurance companies must manage risk properly and set a proper premium on applicants. Higher risk applicants will have higher premiums. Some variable that an applicant can control is eliminate tobacco use, exercise regularly and eat right for a healthy body mass index and have a safe occupation. Other factors including pre-existing conditions, family health history, gender, etc. the proposed insured won’t have control over. If an applicant was to choose higher deductibles, then the premiums would decline. However health insurance can be costly, but if the right coverage isn’t in place, a person could be exposed to a substantial risk.