The cost of life insurance will vary from one provider to the next and so it can pay to shop around. The cost of a life insurance policy is dependent on a number of factors.
The fact is that life insurance policies and the premiums that policyholders are charged for them are partly calculated on probability, partly on the type of policy taken out and partly on specific details of the policyholder’s life.
The type of life insurance policy is an important variable that helps to determine cost. Life insurance can either be fixed for a pre-determined amount of time (term assurance) or last as long as the policyholder does (whole of life). The amount of cover provided by the policy can remain as a constant or change over time at fixed intervals or relative to some other measure such as a mortgage.
Another variable with regards to the cost of life insurance will be the amount that is agreed to be paid out (sum assured) upon the policyholder’s death and the manner in which it will be distributed. Payments can be made in lump sums to the remaining family or can be paid out in determined annual intervals (family income benefit).
Factors such as whether the policyholder is expected to match the average life expectancy will also affect the premiums that a consumer has to pay for their life insurance. People who smoke, work at high altitudes or in other perilous occupations or have dangerous hobbies will be considered to be high risk by insurance companies and will face a higher cost of life insurance.
Different insurance companies have different risk assessment policies so quotes can vary significantly from one provider to the next.
Use our service to help find the right life cover for you.