Life Insurance is required if you have a family that is dependent on your salary and if you have any debts to pay off. There are many advantages of getting an insurance cover. Also many factors determine what kind of insurance you should go for. Insurance companies determine the risk by evaluating your situation and decide on a policy suitable for your needs. The rates for the policy are determined through the risk evaluation. Few of the factors that insurers consider for deciding on the rate are – age, career, your health, family health history, marital status and location.
Age is an important factor which means, the older you are the higher will be the premium rate. Policies for those over fifty would be more expensive as compared those under fifty. If you are healthy and there is no serious ailment then you can get a good premium rate. This is also determined looking at your family history for any illnesses.
Your health and habits also affect the policy rates. If you are a smoker your premium rates would be high because smoking is related to a lot of health problems.
If you are working then your career also plays an important role in determining the insurance rate. Some occupations are riskier as compared to others and hence more risk means higher premium rates. The risks are mainly accident related risks that are considered by insurers. So if your work involves working with toxic materials or parachute or hang glider, then premium for your life policy would be higher.
On the other hand if you have a job which is a routine office job then you can expect low premium rates.
It is not only your career that affects premium rates, but your weekend hobbies could also determine the policy rates. For example if you do a routine office job on weekdays but on weekends if you are a BMXer, then this may be considered while determining your premium rate. Although it may not be as high as a regular risky career, it will still affect your premium rate.
If you have a family and a high risk career it is advisable to go for an insurance policy that caters to this need so that you get a suitable policy value to protect your family and help them cope with the expenses that may occur in the event of any unexpected incident causing your sudden death.