How is a life insurance quote calculated?

A life insurance company that provides the cover will give you terms and conditions on which to offer you life cover based on their assessment of the risk after you’ve submitted a detailed form. Some people will have history or a medical condition and the will need special attention from insurers.

If you fill out a form online an Insurer will call you back and may ask for detailed information about certain aspects of your life style or health before they can offer you cover, or not to offer cover at all. Because forms online are limited and can only ask a set number of questions an agent will call to finish the quote off and get you the best life insurance quote.

life insurance quoteMany factors when calculating a life insurance premium

Life insurance or any type of insurance is calculated on the basis of risk factors. The more likely a person is to make a claim (die, become ill), and the larger their payout claim, the higher their monthly life insurance premium will be.

  • Age (21 cheaper than 55)
  • Health condition (History of illness or fit as a fiddle)
  • Work occupation (Office worker or deep sea welder)
  • Lifestyle (smoker, drinker or fitness Junkie)

Please note it is very important that you disclose and share everything to your life insurance company provider, otherwise, this lack of information (say you said you don’t smoke but did) can be a reason for your cash lump sum of money not to paid out.