We take a look at some of the factors which help insurers determine your policy cost.
Premiums increase as people grow older because our health tends to deteriorate over time.
It's worth considering an insurance plan when you're young to not only lock in a cheaper premium but also secure coverage without any exclusions before you develop any health conditions.
Men are more likely to have higher life insurance premiums compared to women because statistics show that men have a shorter life expectancy than women¹.
3. Smoking habits
Smokers are likely to pay more for their life insurance premiums due to the health risks tied to smoking.
4. Health status
High blood pressure or other health issues might be a sign of future problems. For example, if you're overweight, you're at a higher risk of weight-related health issues such as diabetes and heart disease.
This may then increase your life insurance premiums.
5. Family history
Serious illnesses such as heart diseases and cancer may be hereditary.
If there's such history among your family members, you may find yourself paying higher life insurance premiums.
For certain types of plans, insurers may ask what kind of industry you are working in.
For example, a construction foreman's life insurance premiums may be higher compared to a desk-bound office worker due to a higher risk of accident at work.
While you can't control many of the factors that affect your insurance premium, such as age and family history, knowing what they are could help you understand how your premiums are calculated and any changes in your policy premium. Generally, when you're younger, you'd be free of health conditions, so your insurance premiums would be low.
¹ Source: Death and Life Expectancy, SingStat, accessed on 8 August 2022 from https://www.singstat.gov.sg/find-data/search-by-theme/population/death-and-life-expectancy/latest-data
This article is meant to be a guide. Please seek advice from a Financial Adviser Representative or obtain an accurate quote from your insurer.