What effects the price of an insurance policy premium?
Insurance premiums are structured to reflect the degree of an individual's risks a life insurance company accepts. eg: Smoking or not smoking.
Your type of employment will affect the policy premium. eg: a typical university-qualified professionals working in a predictable environment like an office, would usually cost less to insure than a blue-collar Scaffolding Tradesman working on a high rise building.
- If you have hazardous hobbies or pastimes, like competitive car racing, skydiving or deep-sea diving on shipwrecks, you would expect the premium to be increased to cover the additional risk.
- If you just go to the gym to keep fit or cycle or go bushwalking on the weekends, you wouldn't expect any premium increase.
- If you wanted a particularly large amount of insurance cover, eg: over $2,000,000 all life companies will request an HIV test, regardless of your age, gender, health or occupation.