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How Does One Individual Premium Affect?
Share Hi sir / ma'am,
Hope you're taking care and everything is good in your family.
Currently, reading about life insurance policies and this point made me think about the premium "BMI index affect the premium".
Does it really affect the premium and what are other factors included while insurance companies consider premium amount for policyholders?
Thank you! :)
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Dear Shubham
Premiums are calculated on the basis of mortality probability of a standard life . There are age wise mortality tables for standard life .
Each proposal is underwritten and decision is taken as below :
1. Accept proposal on standard rates
2. Reject the proposal
3. Postpone
4. Rate up the premium
Any life ,where risk of death is higher , is called sub standard life and premiums are rated up . Premium is rated up on the basis of :
1. BMI
2. Pre existing disease
3. HABITS
4. Occupation .
Shailesh
Insurance Samadhan
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Hello Shubham jee,
Premium for life insurance companies can be loaded from standard premium and it depends on a lot of factors:
1. BMI - higher or lower than standard
2. Pre existing diseases
3. lifestyle
4. High risk jobs.
These are some of the factors that impact premium in life insurance
Hope this helps.
Thanks