The pandemic and inflation, which in recent years have swept through our lives, have also had some positive effect. People have become concerned about their personal risk and financial security, which has led to a increased demand for LIFE INSURANCE at an increasingly younger age.
In 2024, interest in life insurance continues to grow considerably. The most common question among those considering taking out a policy is always the same: What is the price of life insurance?
What is the price of life insurance? Determining factors
The truth is that the annual price of a life insurance policy can vary depending on various aspects. In our article on the best life insurances In the 2024 edition, we have already told you which were the best value for money options.
If you need calculate the price of your life insurance, These are the factors you should consider:
The age of the policyholder
When determining the insurance premium, the age of the insured is one of the main points taken into account.
Generally, the younger the policyholder, the lower the risk for the insurer and therefore the more affordable the policy. On the other hand, the older you are, the higher the price of your life insurance policy, because the risk of death increases over time.
It is normal to find three distinct age groups:
- Under 35 years old. Premiums are usually lower due to the lower health risk.
- Between 35 and 55 years old. A gradual increase in fares is usually observed.
- Over 55 years of age. Premiums may increase more markedly due to the higher risk of illness.
Your profession
On a day-to-day basis, an office worker is not at the same risk as, say, a professional parachutist, a fireman or a builder, is he?
Hence insurance companies may set different prices for your life insurance depending on what you do for a living. If it is a risky job, you will probably have to pay a bit more.
Your life expectancy
Factors such as LIFESTYLE and the general state of health influence our life expectancy, and this can have a direct impact on the price of life insurance.
For example, if you have serious illnesses (or have had them in the past), you may face higher premiums.
In 2023, however, a new development was introduced for people who have suffered from cancer. If more than 5 years have already passed since their recovery, their insurance conditions will not be tightened thanks to the right to oncological oblivion.
The sum insured
Another important factor that affects the price of life insurance is the sum insured, or in other words, the amount of money that the company will pay to the beneficiaries in the event of death or disability.
Clearly, if the sum insured is 20,000 euros, the policy will be cheaper than if the sum insured is 250,000 euros, right?
To calculate the amount you want to insure you will need to consider factors such as your outstanding debts and loans (for example, if you are paying a mortgage), the income that would be needed to support your family at your current standard of living, or possible future expenses, such as your children's education costs.
We recommend that you review and adjust the sum insured periodically, especially after significant events in your life, such as the birth of a child, the purchase of a house or major changes in your income.
Coverage
Choosing the right coverages is essential for a life insurance policy that really protects your needs and those of your loved ones. But of course, this also affects the price. The more comprehensive the cover, the higher the premium you will pay for your insurance..
Among the most common coverages are:
- Death cover. This is the essential cover of any life insurance policy, which guarantees the payment of the sum insured in the event of the insured's death. It is the most economical option.
- Coverage for death and total disability. It offers compensation in the event of absolute disability, that is to say, if it is recognised that the illness or injury that the insured suffers incapacitates him/her to carry out any work. This guarantee implies an increase in the price of the policy.
- Coverage for death and occupational disability. It insures a payment if the insured, either due to illness or accident, has their current working capacity reduced or cancelled, preventing them from continuing to work in their trade. It is a highly recommended option, although its price is somewhat higher, as it is more frequent.
Additional guarantees that may be included in a life insurance policy include:
- Protection against accidents of any kind or traffic accidents. This additional cover provides extra capital in the event of death or disability caused by a road accident or other accident.
- Supplementary guarantees. Some policies allow the inclusion of additional guarantees at a discount, such as the inclusion of insurance for children, additional capital for serious illnesses...
We are your life insurance comparator
AXA, Reale, Zurich, Santalucía... In PIB Group Iberia We know how difficult it can be to choose one type of life insurance over another. That is why we act as insurance comparator, helping you evaluate different policies and insurers until you find the one that best suits your needs and budget.
Whether it's to protect a mortgage, ensure the welfare of a beneficiary or simply to have peace of mind in the event of unforeseen circumstances, we're here to help you take out a life insurance policy that's right for you.
Remember that the price may vary depending on your personal circumstances and it is vital to consider all factors before making a decision. Contact our team and we will secure you and your family's future in the most efficient and affordable way.
