Cheap or expensive health insurance and life insurance depends on a number of factors. Both factors from the side of the prospective participant and from the side of the insurance company affect the calculation of insurance premiums that must be paid by insurance participants. What are these factors?
Factor of Prospective Participants
- The following are some of the factors that influence the premium amount from the prospective participant’s side.
- Amount of dependents
One of the factors why insurance is cheap or expensive because of the amount of dependents that insurance participants want to receive. The greater the responsibility of the insurance company, the greater the premium paid.
Talk about age, it’s good to take insurance while you are young. Because age is the size of an insurance company in determining premiums. The older the participants, the greater the premium that must be paid.
The existence of differences based on sex does seem discriminatory. However, this size is still used by several insurance companies in Indonesia. Because there is a theory that states women’s age is longer than men. Therefore, premiums paid by women are cheaper than men.
- Period of insurance
If participants take insurance with a fairly long period, be prepared with the high premium paid. Because the longer the insurance period is taken, the greater the risk borne by the insurance company.
- Height and weight
There is a hidden risk behind one’s height and weight. The higher and more weight a person is susceptible to disease. Do not be surprised if insurance participants with high and excessive weight will be asked to pay more expensive premiums.
Various jobs, various risks. Big-risk jobs make the premium paid by insurance participants even greater. As an illustration, work outside the room is at a higher risk than in the room.
The modern life of the community, especially urban society, has an impact on the lifestyle of its people. Smoking, drinking alcohol, or doing a high-risk hobby is a factor in the amount of premiums paid by insurance participants.
- Health conditions
Before it is decided what premiums are paid, insurance participants must undergo a medical check-up. The premium paid will be expensive if the participant’s health condition is not good or bad.
Factors of the Insurance Company Side
- The following are some of the factors that affect the premium amount from the side of the insurance company.
- Return investment
Luckily if the insurance company is selected both in managing the accumulation of premiums, especially in placement in investment instruments. A large return on investment makes the premium paid be cheaper.
- Calculated costs
Costs such as taxes and other costs also affect the amount of the premium. The more costs, the higher the premium paid.
- Benefits provided
Take insurance that the benefits you really need. The variety of benefits provided by an insurance product makes the premium you pay more expensive.