Generally, life insurance policy has similar coverage but premiums may differ from one company to the other. Each client is treated as different and premiums are fixed according to health information provided. An underwriting is a process used by insurers go get information of clients in determining premiums. Some of the information needed include
Your age plays an important role, especially in life insurance policies. It is generally believed that the older the person, the more likely they’re closer to dying.
You’ll be surprised this too plays a role in determining your premium rate. Women usually charged less than men most times, depending on other factor combinations.
Health and Health Habits
Your health will be determined by going through series of test and medical examination. This will help them know if you have illnesses that could be life threatening. Health habits will determine if you’re consciously weakening your body’s immune system or not. Smoking and drinking are health habits that pose health issues, if not checked properly.
The kind of job you have will determine if you’re exposed to hazards. The more exposed you are to hazards, the higher your premium will be.
Some of us are daredevils and have very dangerous hobbies. The underwriting will allow the insurer know the level of exposure to danger you have – the higher the risk, the higher the rate of the premium.