Consider these 9 things before investing in mutual funds!
What is the right way to invest in mutual funds? How do mutual funds work? What kind of risk is involved? Which fund is right for whom? What things should be kept in mind before investing? Watch this video to know-
Life insurance is aimed at providing monetary relief to the nominee specified in the policy in the unfortunate event of the policyholder’s premature demise. It is basically a contract between the insured and the insurer. The contract mandates the policyholder to pay the insurer a certain amount, called premium, at pre-decided intervals. The insurer promises to compensate the policyholder’s family in case of unfortunate events in the policyholder’s life. While the compensation amount or the sum assured, is pre-decided and fixed, the premium can change from one person to another, basis various factors, for the same sum assured. The premium for the same policyholder can also change—mostly increase—from one interval to another interval.
Insurance experts have broadly listed seven factors that can increase the premium one pays for life insurance.
Higher age
Term life insurance premium depends on the age of the policyholder. If you are buying when you are young, you will find it cheap compared to what the same insurance cost to a middle-aged or old person.
Lifestyle habits
Smokers may end up paying a higher premium because of the higher risk to their life due to smoking. Many studies have linked life-threatening diseases like cancer to smoking.
Higher sum assured
For obvious reasons, higher the sum assured higher the premium
Gender
Men pay more for life insurance than women because, on an average, they tend to live fewer years. Various studies have shown that women outlive men.
Buying policy from an agent
Many insurance companies, in a bid to attract customers, are offering lower premium rates online by a margin of 30-40%, since the purchase happens without any intermediary, reducing the overall cost of agent’s commission as well as paperwork
Buying policy based on medical tests
If you have a record of frequenting clinics or are out of shape or maintain an unhealthy lifestyle, chances are that you’ll end up paying a higher premium. People with sedentary lifestyles or pre-existing medical conditions are simply at a higher risk and so have to pay higher premiums.
Hazardous Occupations
People doing a certain set of jobs, such as those of pilots, fishermen, mine workers, soldiers, which involve a higher risk, will in all likelihood pay higher premiums than those working as, say, teachers or clerks since their occupational hazards are much lower.