Cheap term life insurance

When looking for a good term life insurance policy from a reliable insurer, it is important to ask yourself a number of questions. First, of course, it is important to find insurance that fits your preferences in terms of conditions.

You should also take a closer look at the cost of term life insurance, especially the monthly premium. That way, finding a cheap term life insurance policy becomes a lot easier.

What exactly determines the premium of a term life insurance policy and how do you keep the monthly cost of that insurance as low as possible? These questions are answered below, so you can quickly get a low-cost whole life insurance policy.

Mortality insurance premium determinants

The amount of the premium in term life insurance depends on several things. Therefore, it is not exactly easy to put a fixed amount on it.

Below are the main premium determinants:

1. The insured amount

As with any insurance policy, the premium for term life insurance will depend largely on the amount insured. This is the amount your dependents will receive after your death as a replacement for lost income.

The advantage of a higher insured amount is that there are more financial resources for your dependents, but then, of course, you pay a little more per month during your lifetime.

2. The term and course of insurance.

The term of the life insurance policy will also be a factor in determining the premium. First, that cost will be influenced by the total length of the insurance contract. The longer that contract is valid, the more risk to the insurer and the higher the monthly premium.

Thereby, there are also different death benefit policies based on the course itself:

• Linear declining life insurance, the cheapest option
• The annuitizing term life insurance policy
• The same-premium term life insurance policy, the most expensive option

In most cases, the premium for term life insurance remains the same each year, although some insurers also have increasing premiums!

3. The insured persons

Some of the most important premium-paying factors in term life insurance have to do with the insured individuals themselves. Read more below:

The number of insured persons

Nowadays, it is possible to place multiple policyholders on one term life insurance policy, and this will naturally have an effect on the monthly premium. Once one of the policyholders dies, the insurer pays out.

Quite a lot of variation is possible in this area, as not only the number of people insured, but also the insured amount per person can be freely determined. This way you tailor your policy exactly to your personal needs.

The age of the policyholder

Next, the amount of the premium for term life insurance also depends on the age of the policyholder. This is because insurers realize that the risk of death is greater for someone 65 years old than for a young person 18 years old. That risk is offset by a higher monthly premium.

In addition to having a higher risk of death, older individuals also tend to have more health problems, making that risk even higher. In many cases, this translates into an exponentially increasing monthly premium for term life insurance.

The health of the policyholder

This brings us to the next factor: the health of the policyholder. The insurer determines the premium partly on the basis of a so-called health declaration, which the policyholder fills out when taking out the insurance.

This is a type of questionnaire with questions related to health, chronic conditions, lifestyle and more. Such a statement pays particular attention to the policyholder's smoking habits, as this habit dramatically increases the risk of early death.

Either way, poorer health will result in a higher premium. Depending on the judgment of a medical advisor and the insurer, a term life insurance policy may even be denied.

The gender of the policyholder

It used to be that the gender of the policyholder helped determine how high the premium was. This was because women were statistically less likely to die than men.

Nowadays, however, that distinction is no longer taken into account when calculating the premium for term life insurance, as it is considered a form of discrimination.