There are a few different factors to consider when establishing a premium rate for personal or life insurance policies. The insurance companies in Australia look at different facts to determine a rate that will be payable on a monthly or annual basis. If the policy is for a life insurance policy risk formulas evaluate how soon the policy holder may use the policy based on your current age. Family health history as well present health and wellbeing are taken into account. If you are in good health, a non smoker or given up smoking for more than 12 months and do not use alcohol excessively, then you are likely to have a reduced premium. Your premium will go up if you have high cholesterol poor lifestyle habits or heart and other medical issues. Weight issues will also result in higher premiums due to the higher risk. (To learn more about insurance policies see www.moneysmart.gov.au/managing-my-money/insurance)
There are several other ways to reduce your premium costs so it is a good idea to ask questions about various riders that may be in the policy and whether you need them all. If there is child cover included and you have no children this could be eliminated. The length of term of the policy has a bearing on the cost as well. It is advisable to research the market for similar products and discuss the detailed requirements to enable the policy to be tailor made for your requirements. You can establish what an appropriate monthly premium will in the market place and shop around for the best deal if your life or funeral insurance company or agent is unable to provide comparable rates. Remember when picking a plan that it is better to have one large policy than several smaller ones.
You may be able to receive a reduction in premium as you age or if not available, updating the policy or the purchase of another plan may help save money but still provide the cover required. All these steps are potential money savers for life insurance premiums with the continuing cover for you and your family.