• Top 10 Factors Affecting Life Insurance Premium Costs

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    A great way to help and protect your loved ones, is with Life Insurance which can be a huge investment as well. A lower premium paid can yield to a good amount of savings over a period of few years. Life insurance premiums are based on a number of factors, and it can be quite tedious for a few people to understand why and what the charges are, and why they pay a rate that may not be the same as another. There are some factors that many insurance companies consider when pricing their policies, there factor may not be within your control. But the life choices you make, can also lead to the factors that can affect your Life Insurance premium.

    The factors that affect your premium towards Life Insurance are:

    1. Age: This is an obvious and not surprising factor that affects your Life Insurance premium, the age of the policyholder. If you’re young the rates will be lower in comparison to someone older. The possibility of a young individual contracting a life threatening disease or to pass away in their youth is very unlikely. The insurance companies believe that you’ll make many premium payments before they have to write a cheque for your family.
    2. Gender: Insurance companies aren’t against gender equality, but they believe there is a different life expectancy for different genders. As per the studies and statistical findings, women are believed to live 5 years more than men at the minimum. Therefore affecting the premium they pay, making them pay the premium for a larger period of time but at lower rate which is a plus point for the women.
    3. Smoking: Smoking puts the policyholders at higher risk of all ailments, so if you’re a smoker that that’s as good as raising a red flag to the insurance companies. Most smokers pay a premium twice as much as non - smoker does, thus affecting the premium to a huge extent.
    4. Medical history: There’s isn’t much one can do with the gene pool they come from. If a policyholder has a medical history of serious illnesses like cancer, heart diseases, or any other, then that makes them susceptible to get these from a hereditary perspective. Which increases the individual’s premium by a larger margin than if their gene pool wasn’t.
    5. Health records: You as the policyholder will also need to provide your own health records. These records will ensure that you don’t have any chronic diseases or potential health issues and keep your premium also in check instead of making a difference to it.
    6. Drinking: Drinking of alcohol is injurious to health in more ways than one. If you as the policyholder are a heavy consumer of alcohol this can affect your premium at higher insurance rates. Insurance companies ensure to ask the applicant if they are smokers or drinkers.
    7. The Policy: The policy itself also affects the premium you pay, the longer the tenure of the policy the larger the amount of the benefit at the time of death, since you’re paying it for that period of time. Short term policies are more expensive that long term.
    8. Profession: Your profession also plays an important role in the premium you end up paying, any policyholder working in the mining industry, oil and gas, fisheries or any other dangerous profession increases the premium amounts you pay for the policy you decide to take.
    9. Lifestyles choices: Many insurers have a higher premium for people who love to takes risks for the thrill of it. Like speeding cars, climbing treacherous mountains or other high risk activities. Thereby increasing your premium to substantially more than other.
    10. Obesity: Obesity is another factor that affects your premium as a policyholder, being obese can lead to a number of health problems like Osteoarthritis, High Blood Pressure, Cancer, Stroke, Coronary Heart Disease, causing overall health problems in the future and also increases your rates.

    How these factors affect your rates of premium is dependent on the insurance company and the way they treat these factors and the combination of them. For example: having a history of cancer in your family and still being a smoker can affect your rate in more than one way or being obese and having a history of heart disease also affects your rates of premium. Every insurance policy is based on each individual and premiums are calculated on the insurance company's rules of rating.

    Top factors affecting life insurance premium

    Top 10 Factors Affecting Life Insurance Premium Reviews

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    • SBI Life Life Insurance
      "Looking for better feature and service"
      0.5 3.0/5 "Satisfactory"
      Performance of people they wont helpful, they don't realize whom they are dealing with. If anything happens also no body is there to help me. SBI life is average, I have tenure of 15 years, premium monthly 1500. I will maturity benefits lump sum amount its nominal, tax benefits, life cover accidental cover
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken Life Insurance with LIC,the premium amount is 3800.i make direct payments at the branch.The policy coverage amount is one lakh, i feel its very less.The policy is for 15 years,I submitted documents via an agent.Plan name is Jeevan anand.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken a Life Insurance with LIC.The premium amount is 13800 in a year.The policy coverage is three lakhs,I make direct payments at the branch.I have no claim experience,its been nine years since i have taken this policy.The policy is for 15 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 16, 2018
    • Tata AIA Life Insurance
      "Good Investment"
      0.5 5.0/5 "Blown Away!"
      I took this Insurance some 2 years back and the experience with it has been pretty good. I have been paying Rs.25000 as premium in this Insurance. I would be getting a Money back for every 2 years. The overall experience with it has been pretty good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 16, 2018
    • Max Life Insurance
      "Good Insurance"
      0.5 5.0/5 "Blown Away!"
      Like all my Life Insurance even this is a Money Back plan. Every 3 years I will be getting a cashback and at the end of term I would be getting a lumpsome amount. I have been paying Rs.15000 as a premium for this Insurance. Customer service of them is pretty good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Good investment"
      0.5 5.0/5 "Blown Away!"
      I have taken a Money back policy in LIC, in which every 5 years I will be getting Cashback and also at the end of stint I will be getting a lumpsome amount. I have been paying Rs.25000 as an annual premium for this Insurance. They provide Loan on the basis of this Insurance. I have making my repayment for this Insurance using cheque mode.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 16, 2018
    • Max Life Insurance
      "Good Investment"
      0.5 4.0/5 "Great!"
      I have taken a policy in this Insurance wherein I would be getting a return at the end of my whole term. I have been paying Rs.25000 as an annual premium for this insurance. The payment is directly linked to my account through ECS. The return expected is around 8%.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taken Life Insurance with LIC,the policy is for 21 years ,the plan name is Endowment policy,I pay a premium amount of 15,000.I get a policy coverage of three lakhs,I make payments directly at branch,the executives are good and had explained the policy in detail.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taken Life Insurance with LIC,the policy is for 8 years ,the plan name is Endowment policy,I pay a premium amount of 10,000.I get a policy coverage of two lakhs,I make payments directly at branch,the executives are good and had explained the policy in detail.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I have taken Life Insurance with LIC,the premium amount is 14,000 per annum.The total policy is 20 years.I make online payments,i have no claim experience so far.The policy coverage amount is two lakhs.The customer service is good they respond on time.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 15, 2018
    • SBI Life Life Insurance
      "Good for Protection"
      0.5 5.0/5 "Blown Away!"
      I got Life Insurance from SBI, when I took home loan from them. They have issued the policy copy on time, they collected one time premium around Rs. 35,000 for 20 years, it has life cover, accidental cover. If some thing happen they take loan insurance.
      Was this review helpful? 0
      , pune
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Very good for child"
      0.5 4.0/5 "Great!"
      Got a policy for my child and I have bought this policy around 10 years ago from LIC. This policy has the tenure of 20years. The customer support is better with the LIC. I pay the premium amount of Rs,11,000 every year , the plan benefits and the coverage is good with this policy .
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I hold the Money back life insurance policy with the LIC for past 15years. This year this policy is going to get matured. I pay the premium amount of Rs,5000 every year. I get the money back amount of Rs,12000 every 4 years once. The plan benefits and the coverage is good with this policy .
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Very good policy to use"
      0.5 4.0/5 "Great!"
      Got the jeevan anand life insurance policy around 10 years ago. The customer support is better with the LIC and what ever we need we can login to the website and we can fulfill our query. This policy has the tenure of 15years .I pay the premium of Rs,20,000 per year.
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken Life Insurance with LIC,i pay a premium amount of 7,000.The plan name is Education policy, the policy is for 20 years.I get a sum assured of 3.50 lakhs.I have no claim experience with them.I make payments by cash,agent comes collects it from my place.
      Was this review helpful? 0
      , jaipur
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Average"
      0.5 3.5/5 "Pretty good"
      I took my life insurance policy from LIC. I am using the service for past 4 years. I have taken this policy through an agent. I pay the premium directly to the office. Am paying yearly around 3K for my policy. The coverage and the plan benefits are average.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 6-7 years and it is a long term policy. The tenure of this life insurance policy is 20 years. I pay my premium once in 3 months through cash and i am convenient with the payment options which they are giving. The name of the policy is Jeevan Anand and i am happy with the coverage and benefits of this policy.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Better insurance"
      0.5 5.0/5 "Blown Away!"
      I took 2 life insurance policies with LIC. This was taken through an agent. The policy coverage and the plan benefits are better. I never contacted the customer service. I am paying half yearly 5K as a premium. The payment was done through net banking.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taekn LIfe Insurance with LIC,the premium amount t is 400 per months,the plan name is Jeevan anand.The policy coverage amount is five lakhs,the policy is for 20 years.i pay 50,000 per annum.The payment is registered for an auto debit.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 15, 2018
    • LIC Life Insurance
      "Traditonal and Turst worthy"
      0.5 5.0/5 "Blown Away!"
      LIC was started when I was a student, my parents gifted me this life insurance. At the time premium amount was Rs.150, finally I got 1.50 lakh with bonus interest around 75,000. It was a great surprise for me. Then I took LIC policies from end, each has different tenure. Plan name called Bheema gold, endowment policy and child plan.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 15, 2018
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