Term life insurance is calculated based on a number of factors including age, health, lifestyle, occupation and the amount of cover you require.
Age– As we get older, the chances of us being diagnosed with an illness become more likely, and the cost of cover increases with age.
Health– Your overall health is also important, as it can affect the cost of cover. If you have pre-existing medical conditions, cover may cost more or you might not be able to get cover at all.
Lifestyle– Lifestyle is also taken into account when calculating the cost of cover. If you have a risky job then you are likely to pay more for cover, as the chance of an accident occurring is higher.
Occupation – Certain occupations carry more risk than others, such as a fire fighter or a stunt person. Depending on the insurer, certain occupations may require additional information before cover can be offered.
Amount of cover – The amount of cover you require will also impact on the cost of life insurance. As the amount of cover increases, so does the cost of cover.
To find out exactly how life cover is calculated and to get an estimate of the costs, you should speak to an insurance broker. They will be able to provide advice on the best kind of cover for you and the cost. You can also read our guide at [Link] for more information.