What are the factors that influence life insurance?

Last Updated on 2 years by AlexJames

Each life insurance has different characteristics, so its price is variable. We tell you what the factors that influence when acquiring it are. To answer this question we must start this article by telling you that there is no fixed or defined price for life insurance, there are insurance companies that offer you more complete coverage and for higher insured amounts while others offer you more basic coverage and with less insured values. This will be one of the main factors that will influence the cost of your life insurance. Second, and no less important, is that the value of the premium will depend on the particular circumstances and characteristics of each person, which we will explain below:

The type of insurance

As we mentioned before, there are insurance companies that offer you different types of coverage. Applying it to the cost of life insurance, you must understand that this type of policy has two objectives. The main objective is to protect the beneficiaries (family, partner, children, among others) in the event that the insured person dies. Secondly, and in the event that the contracted coverage is not for death, it will be available so that the insured has protection in the event of accidents or serious illnesses.

There are a series of variables that we will see later, however, we highlight that life insurance can be complemented with additional coverage such as those mentioned above and that provide protection, in case the insured suffers from an accident and / or illness. serious. You can also complement life insurance with policies that have an additional purpose, for example, covering education expenses for your children or reducing your pension gap. All these additional policies and coverages will be reflected in the final price of the insurance and will respond solely to the needs of each person.

The age of the insured

This is one of the main factors that insurance companies take into account when offering you a life policy. If the insurance applicant is a young person without any type of medical history, the value of their premium will be less than that of a person who is older and has a medical history.

The sum insured

We will see this with an example: We will take two people of the same age and gender, in excellent health and with no medical history. Felipe wants to take out life insurance that guarantees his family a capital of $100,000,000 in the event of his death, and Diego wants to take out life insurance that guarantees his family a capital of $200,000,000 in the event of his death. For our example, we are dealing with two people with similar insurability characteristics. Diego, who wants to insure more capital, will have to pay a higher premium cost than Felipe, who opted for a lower sum insured.

Profession and work of the insured

A person who, due to their profession or trade, is expose to risk situations, must pay a higher premium cost than a person who, after an insurability study, shows that their work does not represent any risk to their integrity, this will finally be determine by the insurance company in the underwriting process.

Medical history of the insured

This is an important factor when hiring life insurance, since all insurance companies carry out an insurability study in which they take into account the medical history of the person who is interest in acquiring a policy and if say person presents pre-existing diseases or has a history of health in the medical history, the cost of your premium will be higher compare to a person who does not present this scenario in the insurability study.

The time of the policy

There are life insurance policies that provide protection for the time defined by the insured and policies that provide protection up to 99 years of age. In either case, the cost of life insurance varies according to the client’s needs.

Finally, it is important to remember that purchasing life insurance becomes a decision based on love and responsibility towards the people you care about the most, guaranteeing their well-being in any unexpected situation. For this reason, at MetLife we ​​have a team of protection professionals who will advise you and offer your life insurance that meets your needs and those of your loved ones.


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