Knowledge to Calculate Premium Rates
May 12, 2008
Most of us would like to know that who a how insurance companies determine insurance rates. Here is an article that tells you about that how to calculate premium rates. The calculations are no so tedious; it mainly depends on your age group, your sex and mainly on your health.
The insurance companies decide their premiums on the basis of some statistics, like the have the data for the last couple of years. And by using that data they find out that how many men died in those years, and how many women died in those years. If the count of men is greater than that of women, then the premium of men will likely to be higher. They also find out that which age group of people died more in those years loke 20-35, 40-55, and on the basis of it charge you accordingly. The observations of this statistics generally form a pattern.
For instance you are a 30 years old female, who daily drinks, so the insurance company would decide the life insurance premium by analyzing your whole body health. They would take the blood samples; they might conduct a physical check up. They would like to know everything about you. So the premium rates would depend on the average number of drinking female of the age group 25-35 who dies in the last couple of years.
So to do income protection you should always consult as much companies as you can who provide life insurance, and take your decisions judiciously.
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