Life insurance is a great insurance instrument to make sure our loved ones can financially survive should the unexpected happen, and life is lost.
For many who aren’t independently wealthy, the proceeds from a life insurance policy are crucial to ensure our loved ones maintain their current standard of living.
If you are looking to get a life insurance policy ( term or permanent life insurance), you may be curious to know what it costs to own a life insurance policy as well as how the rates are determined.
What You Should Know About Life Insurance
Life insurance companies in Nigeria commonly use different factors to determine insurance premiums. They use age, health, work and other related information that can help determine how much risk a life carries.
Factors considered by Insurance Companies
Insurance companies in Nigeria use these common factors to determine the premium charged on life insurance. The typical factors insurers may include the following:
- Age
- Gender
- Occupation
- Pre-existing health conditions
- Immediate family’s medical history
Insurance companies consider the factors mentioned above to calculate how much is charged on your life insurance policy. The premiums need to cover costs such as administrative expenses to administer the insurance policy as well as earn profit.
Age is the most critical factor in all of the factors mentioned above. It is generally believed that the older a person gets, the higher chance there is of a person dying. Because of this, premiums usually tend to increase as you get older, given that all other factors are constant.
Ways to Lower Your Life Insurance Premium
The first way to reduce your life insurance premium is to make sure you are in good health as much as possible. Some health conditions shoot the premium such as obesity, ulcer, Asthma, cancer, diabetes and much more. A healthy weight, cholesterol and blood pressure maintenance should make you eligible for the best rates, too.
Other ways include avoiding dangerous lifestyle and risky sporting activities. It is also advisable that you take up a life insurance policy at a younger age to reduce the cost of obtaining a policy due to age.
Conclusion
There are many places where you can find insurance quotes online. Many insurance companies in Nigeria have installed a premium calculator on their websites that give you result in seconds.
You can look up insurance companies in Nigeria to find out where you can get the best insurance quotes for life insurance