Friday, February 17, 2012

Factors an Insurance Company Considers While Offering Life and Health Insurance Policies

Generally the insurance firms consider few things while offering life and health insurance policies. They are age, gender, marital status, smoking, current and past health, work and life style.

1. Age

Age is the most important factor while considering to take life and health insurance policies. In life insurance policy the risk of death increases with age. While in health insurance the risk of health problems increases with age .
2. Gender
The insurance premiums are cheaper for women than man because as on an average, women live longer than man. This factor mainly affects in life insurance policies.
3. Marital status
The health insurance policy companies consider this factor. Because if you are married then you need more medical benefits then singular. It affects minimum in life insurances.
4. Smoking
This factor effects on both policies. If you are smoker, you are like to encounter a lot of health problems and if you continue smoking, your life time will get shortened.
5. Current and past health
The health insurance companies check your current and past health while offering insurance for you.
If you are in good health at present and in past, the insurance firm assumes you require less benefits from your health insurance policy. Similar is the case in life insurance also.
6. Work and life style
The insurance firms look into your work and life style. If you are having good life style, you require fewer benefits from your insurance policies.

Taking these factors in to account an insurance company offers life and health insurance policies to individuals.

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