Life Insurance Premiums in the Future

Life insurance premiums should not be any different in the future than they are today. Insurance companies use specific criteria such as age, smoking status and body mass to calculate the premium that is paid. The type of policy that is in force will determine the amount of premium that will be paid for the policy.

One factor that insurance companies will always use to calculate the cost of life insurance is the age of the insured. Usually, the older a person gets the more a life insurance policy is going to cost. It is best to always get a life insurance policy when individuals are young because they are generally in better health and will get better rates for a policy. Insurance costs more for older people because of the way the mortality rates are determined. Insurers have calculations and charts that show general life expectancy based on a person’s current age. This is why it is more expensive for an older person to buy a new life insurance policy.

Another factor that insurers may continue to use use to calculate the cost of life insurance is a person’s smoking status. The smoking status can vary from insurer to insurer but it basically consists of a standard smoker, abstaining from using cigarettes and abstaining from using tobacco products. The best rates of course will always go to the non-smoker. However, people that have quit smoking can also benefit. The smoking status is used to determine how long and if a person has abstained from smoking or using tobacco products. Whether a smoker or non-smoker usually an insured can get better rates if they do not smoke or have stopped smoking cigarettes.

Insurance companies are sure to continue to use a person’s height and weight as a factor to calculate the amount of premium being paid. This is because a person’s weight in relation to their height is an indicator to predict mortality rates among certain types of people. The heaver a person is compared to their height is seen as a greater risk because they are seen as overweight. Usually, a person’s size is compared to an index of heights and weights to see where an insured fits in the scale. If they are too heavy compared to their height than they may pay more for their policy. Many people in society today are seen as overweight and borderline obese which can lead to health problems.

The premium being paid on a policy is dependent on the type of policy that was purchased and any benefits that are included. A life insurance policy can come in various types including a whole life, a term life as well as simplified issue. Each types of policy has a premium that is either set or can be guaranteed when additional insurance needs to be purchased.