Numerous factors play a role in determining the final price of your life insurance premium. But did you know that family history could be one of them? Yes, many insurers also take the history of your family health into consideration.
Let’s understand the factors that affect your term insurance premiums and why you shouldn’t hide your family history.
Why is Family’s Medical History Important?
When you buy insurance, the company is insuring your life without knowing much about you. This is a huge risk if you look at it from the insurer’s point of view. For such a reason, insurance companies want to know the kind of risk they are taking up. If there is a serious condition in your family, they could reject providing you with coverage altogether. But if the medical problem doesn’t pose a huge risk, then the company settles with a higher premium.
Some Factors that Affect Life Insurance Rates
1. Genetics and Heredity
Some disorders or medical conditions are hereditary. They run through your family, making it very likely that you would get it as well. Such conditions are in the genes so there is a chance of you getting affected.
2. Typical Lifespan
Your family history could consist of an average lifespan. This could be a shorter or a longer lifespan but the insurer would consider it when deciding the premium.
Some Illnesses That Are Checked by Your Insurer
- Diabetes
- Cancer
- Heart diseases
- Kidney-related issues
- Lung diseases
Every insurer will not treat the above-given illness the same way. Some might think strokes, diabetes, etc. play an important role in deciding the premium of your life insurance. But for some, genetic disorders could be the deal-breaker. It varies from insurer to insurer.
How to Get the Best Life Insurance?
There are several insurers that will give you a quote for the premium. Hence, it is recommended to check with every insurance company to be sure you get the best. After you have all the rates, it is a good time to sort through the companies based on the claim settlement ratio, solvency ratio, authority in the market, and finally the premium price. You shouldn’t compromise on the insurer just to pay a little less.
Do Not Hide Your Family History
If you think that hiding your family history can help you get affordable premiums then it is wrong. Eventually, if you were to get diagnosed with something which your insurer doesn’t know, then your claim could get rejected. To ensure that your claim doesn’t get rejected, it is better to share your family’s medical history and also your health record.