Existing customers – for more information regarding recent changes to your Income Protection or TPD insurance please click here

Existing customers – for more information regarding recent changes to your Income Protection or TPD insurance please click here

Life Insurance

These Are Some of the Key Factors That Affect Your Life Insurance Quote

05 Feb 2021

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

Most of us have car insurance. Many people also insure their other assets. What about their life?

It may not always be easy to make up your mind to get a Life Insurance policy.

However, know that Life Insurance can give you a much-welcomed sense of security. But you may also worry about the costs. Can you afford the premium and recurring payments? What affects your premium in the first place?
If you’re like most people, you just want to know what you’re paying for and how your policy can change. You want to have all the facts, such as knowing the key factors that affect Life Insurance quotes, before you commit.

Factors That Can Affect Your Insurance Quote

1. Age

As you grow older, you become more likely to develop diseases and other health problems.

Along with gender, this is one of the most critical factors that affects your Life Insurance quotes.

When you’re young, you’re more likely to be healthy. The insurance company’s liability is less likely to come due any time soon, so they may give you a better quote.

A vital implication here is that you may want to consider taking out an insurance policy as soon as possible. If you’re already thinking about it, Life Insurance will tend to be more affordable now compared to when you’re older.

2. Underlying Health Conditions

Unhealthy individuals generally have higher premium rates.

That’s why many insurance companies will require you to go through a medical examination as part of your application. They will consider your general health, among other things, to give you a final Life Insurance quote.

Most insurers will be looking for your blood pressure, weight, height, cholesterol levels, and such. If you have a high Body Mass Index or BMI (Normal BMI for adults is between 18.5 to 24.9), for example, the insurance company may consider it a risk factor.

3. Smoking and Alcohol Consumption

Life Insurance companies also take into account your lifestyle in determining your quote. Smoking and alcohol use are especially risky in the eye of insurers. If you’re a smoker, it will definitely be a red flag for most Life Insurance providers.

The differences will not be small either. Life Insurance rates may be considerably higher for smokers compared to non-smokers.

That said, if you’re to quit smoking, you may qualify for lower rates, or you may qualify for better rates should you quit after getting Life Insurance.

4. Occupation

Miners, pilots and roofers are among the many professions considered riskier than others. When you apply for Life Insurance, insurers will ask about your work. Your premiums could be higher if your occupation exposes you to dangerous activities and hazardous conditions.

5. Family Medical History

Your family medical history may be something out of your control, but it’s not irrelevant to your Life Insurance quote. If your family has a history of chronic diseases, especially the hereditary sort, your premium rates may be higher.

Even if you have no current medical conditions, it is important to disclose any family history as this may be challenged at claim time.

6. Hobbies and Interests

What do you do in your spare time? Your hobby can also influence your Life Insurance quotes. Theoretically, those who play chess all of the time instead of, say, motor racing are likely to get more favourable premium rates. But if your favourite hobby is bungee jumping, that counts as a risk.

Extreme sports increase the odds of something happening to you prematurely. That’s why Life Insurance companies may charge much higher premiums for clients who take part in such activities. Some insurers may not offer cover those who practice certain hobbies or behaviours.

Understand what impacts your Life Insurance Quotes

Don’t look at your premium rates as set-in stone.

The top things that affect your Life Insurance premium rates are your health and age. Life Insurance companies also consider your health, smoking history, and family medical history. Many people become surprised when they’re asked questions about their hobbies, as well.

If you are young, and your family health history is relatively healthy you may qualify for lower Life Insurance premium rates.

On the other hand, if you are higher risk, you can try and improve some of the factors that apply to you, such as quitting smoking.

Before you buy Life Insurance, you may want to use a Life Insurance calculator to get a quick Life Insurance quote and see where you stand. Are you still wondering ‘do you need Life Insurance?’

You may choose to get some professional advice or carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.

Disclaimer: This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.

Please do not use this information as a substitute for getting a proper quote and deeper assessment of your choices.

https://www.investopedia.com/articles/investing/102914/7-factors-affect-your-life-insurance-q uote.asp

Help protect your family with
Australia's most awarded direct life insurer
five years running (2019 - 2023)

New Customer Enquiry Form
Existing Client Enquiry Form
Claims Support Form
Request a callback