Pricing Breakdowns
Insurance pricing can often be confusing for first-time buyers. We understand the uncertainty that accompanies a purchase of this magnitude, and we want to help make it an understandable process for all involved parties.
One of the first questions that is often asked is: How much will this cost me?
The answer to that question is based on a series of questions related to your age, gender, health status, the amount of coverage required, and most importantly, the type of product that you wish to own. We have provided a pricing matrix to help illustrate the relationship between these factors (which are but a few of the ones that eventually determine your rate). You can view the matrix here. For a breakdown of the factors and why they are important, continue reading below:
Pricing Factors
Age
Insurance products offer a payout based on a trigger such as a critical illness or death. As we age, the likelihood of us becoming sick and passing away increases; therefore, insurance companies must charge more money if you decide to obtain coverage later on in life as you will be paying premiums for a shorter period of time than someone who purchased it at a young age. Don’t worry though, there are plenty of affordable and flexible options available for individuals at all stages in life.
Gender
Insurance companies determine the likelihood of you triggering a payout based on health statistics acquired over a long period of time. In some situations, there may be a higher likelihood for death or a critical illness in one gender over another, thus requiring a different premium amount.
Health Status
There are many benefits to healthy lifestyle choices, including better insurance rates. If you are in good health and avoid risk activities like smoking, drugs and/or heavy alcohol consumption, you will be paying less. This area is one of the most influential pieces of the pricing formula, and interestingly enough, it’s one of the easiest things to change in your favour.
Product Type
The amount and type of insurance that you require are the largest determining factors when arriving at a price. Different products cater to unique coverage and financial needs, each with their own structure, features and restrictions. Helping you understand the differences between products, as well as which ones offer the best value for your investment is part of our responsibility.