Factors that influence the cost of your Life Insurance premiums

Life insurance is important because it can help you replace lost income, settle large debts, offer financial protection and guarantee the transfer of significant amounts to your beneficiaries in the event of your passing.

Premiums are the amount you pay on a monthly basis in exchange for securing a Life Insurance policy and several factors can affect this amount including:

Age: Generally, the younger you are, the lower your premiums. The older you are, the higher your premiums.

Health: Any medical conditions or health issues will generally increase the cost of insurance. Some health issues materialize as you age such as High Blood Pressure, Heart Disease, Diabetes, Cancer etc.

Habits, Lifestyle and Occupation: If you list bungee jumping as a hobby, you will likely have a higher cost of insurance than someone who has reading as a hobby. Smokers will generally have a higher cost of insurance than non-smokers. Construction works will generally have a higher cost of insurance than remote workers.

Family Medical History: A history of certain medical conditions in a family can lead to higher premiums. For example, a history of breast cancers in parents and grand parents may lead to increased premiums.

Coverage Amount: Generally, your monthly premium payments will increase with an increase in the amount of coverage sought.