What can affect the cost of Life Insurance plans

The cost of life cover is based on a number of factors – age,  location, occupation, the length of policy, whether or not it is to be a joint policy, and for how much one wishes to be covered. There are also other things that can affect the cost of a policy, such as health issues – for instance, if the prospective policyholder is a smoker, or if they have any pre-existing medical conditions that could affect the policy. You also needs to declare any other factors that could be relevant, such as participation in dangerous sports. For the most secure life insurance, full honest disclosure is necessary, or the policy could be invalidated.

You must be aware that the best life cover plan is not necessarily the cheapest, but the one that provides the correct cover to fit YOUR needs. As is true with all types of insurance, it is to be strongly advised that if you are unsure of the type of policy or amount of cover you need, then you should speak to one of our advisers in order to ensure the right policy is setup, based on your individual circumstances.

There are also a number of different factors an insurer will use to calculate their rates, they are things that affect your life expectancy; they include:

·         Age

·         Lifestyle

·         Where you live

·         Medical history

·         Family’s medical history

·         Overall health

·         Hazardous recreational activities

·         Whether you smoke and/or drink

 

Not all life insurance companies use the same rules to calculate their rates. Some may for example consider high blood pressure more of a risk than the next; in this case the former would offer insurance at a more expensive rate than the latter. It’s important to get quotes from a wide range of providers, as we do, to see which company offers you the best rates.

Some of the most common health conditions that may affect rates are as follows:

·         High blood pressure

·         High cholesterol

·         Depression

·         Asthma

·         Type 2 (adult onset) diabetes

·         Cancer

·         Heart disease

·         Coronary artery disease

·         Stroke

 

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