Generally Life Insurance Premiums will remain the same throughout the entire policy. This is what is known as a 'Level Premium'.
You will choose before the Life Term Insurance Policy begins the frequency that you pay the premiums, the options commonly available are:
* Monthly
* Quarterly
* Annually
Payments are usually required via direct debit or cheque.
The factors that are taken into consideration when calculating the initial or base Life Insurance Premium are as follows:
The amount of Life Term Insurance Cover that is being applied for
The gender of the life assured/lives assured
The age of the life assured/lives assured
Smoking habits of the life assured/lives assured
The occupation of the life assured/lives assured
The lifestyle of the life assured/lives assured
The insurers administrative charges
The medical history of the life assured/lives assured
It is possible that the premium can be increased if the policy needs to be medically underwritten, this can be for anything from a life assured being overweight to having a family history of cancer or from being a recreational drug user to having a dangerous occupation such as deep sea fisherman!
For further information please see our Life Term Insurance Underwriting page.
In simple terms each and every person insured pays a Life Insurance Premium into a huge pool of money and when claims are made the proceeds come from this pool. The insurer needs to ascertain how much of a risk to the pool each new person presents and the Life Insurance Premium is charged accordingly. If somebody is a higher risk to the pool then they will have to pay more than the people that present little or no risk.
Obtaining a quote for a Life Term Insurance Policy is straight forward and can be done by visiting any major insurer, insurance comparison website or by speaking to a financial adviser/broker.
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