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How Your Medical Condition Affects The Cost Of Life Insurance

Medical condition will either increase or reduce the amount of premiums you will pay for life cover. Your premium rates are determined by your risk class which is determined by the factors outlined above. Your medical condition is the one that plays the biggest role in determining your risk class.

A life insurance policy provides cover against death and pays the sum assured to your beneficiaries or to yourself depending on the nature of the contract. The premiums you pay depend on several factors such as your occupation, income, sum assured, area of residence age, and most importantly, your health condition. This includes both your current condition as well as your medical history. Here, we look at how your medical condition affects the cost of life insurance.

How Does Your Medical Condition Affect The Cost of Life Insurance?

Your premium rates are determined by your risk class which is determined by the factors outlined above. Your medical condition is the one that plays the biggest role in determining your risk class. This is because if you have certain medical conditions such as cancer, your probability of dying is higher than that of a healthy person. The insurance company is therefore more likely to pay the sum assured on your contract within a short time; unlike in the case of a healthy person, where it is likely to take longer and therefore invest the cash flow it receives in form of premiums.

A medical report is necessary before you can be insured and is part of the underwriting process. A medical test is undertaken by a general practitioner or a medical officer employed by the life insurance company. The common areas that are of concern to the insurance company are bowel conditions, weight, cancer, diabetes, smoking, heart condition, high blood pressure, and level of depression/anxiety/stress. If you suffer from any or several of these conditions or happen to be a smoker, you are considered as a "risky" policyholder and end up paying premiums that have been adjusted for the extra risk that you pose to the company.

Another health factor that determines the cost of life insurance is the medical history in your family. If your family has a history of health conditions such as diabetes, cancer, high blood pressure among others, it implies that you are also likely to suffer from them in future. As a result, the premium amount is increased by a rate proportionate to the amount of extra risk you pose to the life insurance company. However, medical conditions suffered by your family members aged over 60 yrs normally do not affect your premiums.

Conclusion

Other factors such as occupation, age, gender and lifestyle influence your health well being. As such, they influence the amount of premiums you pay to the life insurance cover provider. If you work in risky occupations such as driving, you are likely to pay higher premiums than somebody working from an office. Your lifestyle influences your medical condition. For instance, if you engage in rock climbing, you are more risky to the company than somebody who does not. Consequently, the premium quote is higher.

At the end of it all, it is clear that your medical condition will either increase or reduce the amount of premiums you will pay for life cover. If your medical condition is okay, you will pay lower premiums than somebody who is ill. Your personal and family medical histories also affect the cost of life cover in the same manner. These factors help the insurance company to plan accordingly when arranging for your life cover by ensuring you are charged the right premium amount.

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