What is an Insurance Premium?
Simply put, an insurance premium is the cost of your insurance. Your premium is usually paid monthly, half-yearly, or yearly, depending on the policy. The amount you pay for your insurance differs depending on your coverage and several other factors such as medical history, lifestyle, age, and more. As the price of an insurance plan is based on the risk of insuring a person, factors that increase the likelihood of hospitalization or death will also increase the cost of your insurance. Read on to find out what factors determine your insurance premium at Singlife Philippines.
1. Medical History
When it comes to determining the price of your insurance premium, medical history is one of the factors that insurance companies take into account. For those with any pre-existing conditions or medical history, the insurance premium may be higher because of the higher likelihood of being hospitalized. On the other hand, those with no medical history or family history are likely to pay less for their insurance because they are considered as less risky to insure.
If you have a job with occupational hazards that increase your risk of injury or death, this will contribute to a higher premium as well. This typically includes professions that are more high-risk such as construction, firefighting, mining, truck driving, and more, as compared to office jobs which are considered to be relatively low-risk.
On average, females have a longer life expectancy than males as statistics show that men typically have a higher chance of earlier death compared to women. This means that for life insurance, men may have to pay a higher premium compared to women. However, for health insurance, women generally have higher health premiums because they have a higher chance of getting sick compared to men. Great news! Singlife offers competitive uni-rates for our Gcash products, where both men and women get to enjoy the same rates.
While there are some factors that are out of your control, leading a healthy lifestyle is one way you can reduce your insurance premium. Leading a healthier lifestyle will keep your life and health insurance premium lower. Unhealthy habits such as smoking can lead to higher premiums as smoking puts someone at risk of serious health issues like respiratory problems, heart diseases, and high blood pressure. In addition, if you frequently engage in risky behaviours such as scuba diving, skydiving, and other similar activities, this may also affect your insurance premium.
Last but not least, age is one of the main insurance premium factors that young adults seem to overlook. As you age, your life expectancy decreases, which makes you more expensive to insure. The coverage you receive when you’re older may also be different and come with more requirements that you’ll have to meet before qualifying for insurance. This is why it’s important to consider taking out an insurance policy as soon as you’re able to afford it.
Get an early start and take control of your finances with Singlife’s health and life insurance plans. Learn more about our available products today.