What can impact the value of my life insurance?
There are several factors that can condition the value you pay for your life insurance, depending on the risk that insurers incur when granting you the contract. Find out more in this article.
Are you looking for life insurance? Why not seek the help of an insurance mediator to find the best proposal for you, completely free of charge? Contact Poupança no Minuto and start the process today! Or first read about which factors may jeopardize the hiring of the insurance and its value.
What factors can influence the life insurance premium?
According to the risk level, the price of life insurance varies, with several factors to consider, from lifestyle habits to medical history.
If there is, for example, any pre-existing health problem, one of two things can happen: the insurance company may refuse to insure your life, or exponentially increase the amount you will pay for the contract, aggravating the premium. It is also possible that they put an addendum in the contract that exempts the insurer from covering death or disability resulting from the problem already existing.
Let's see, point by point, what factors an insurance company takes into account about a client at the time of subscribing a life insurance policy.
Medical history (pre-existing conditions)
So, one of the factors that the insurance company takes into account is the medical history of the potential policyholder. In the presence of a health issue, such as high blood pressure (due to the risk of cardiovascular diseases), it is possible for the insurer to refuse the contract or significantly increase the amount that the client will pay for the insurance. In order to protect itself, the increased amount will depend on the severity of the illness. Click here for more information.
Characteristics like age and weight.
Age is a factor that insurers take into account, as older clients may pay a higher life insurance premium - due to the higher likelihood of illnesses and health problems. The same applies to Body Mass Index (BMI), as the risk of disease is higher in cases of extreme thinness or excess fat. These are characteristics that usually lead an insurer to increase the insurance premium or even refuse its hiring.
3. Habits and lifestyle
The habits and lifestyle of a client are also considered, such as smoking, drinking alcohol, or sedentary behavior. If a potential insured does not have the mentioned habits and has an active lifestyle, exercising and playing sports, it is less likely that their life insurance will be denied or their premium increased.
Family background and genetics
Finally, the client's family background and genetics are also confirmed by the insurance company before subscribing to a life insurance.
In other words, the insurance company verifies in advance whether the family members suffer or have suffered from serious illnesses such as diabetes, cancer, or cardiovascular diseases, to understand the level of risk of a client also suffering.
Therefore, the insurer can deduce the genetic characteristics of a client from that background, being able to decide whether or not to increase the value of life insurance.
If you want to take out a life insurance policy, the process becomes much simpler if you turn to an insurance broker to help you with the entire process. In addition to not having any costs, the broker can present you with several proposals and guide you in choosing the proposal with the most beneficial conditions for you! Talk to Poupança no Minuto and find out how we can help you.