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What do insurers go by when assessing your risk?

In order to calculate the insurance premium, the insurer needs to assess the level of risk as accurately as possible, i.e. the probability of event insured. Based on the analysis results, an underwriting guide is made, with reference to which potential clients are classified in accordance with the level of risk they pose to the insurance company, writes IOL.
What do insurers go by when assessing your risk?

When assessing the client's risk, insurers consider several factors, which are identified during the questionnaire filling up.

Age

The older the client, the higher the likelihood of chronic diseases, which is why people in their 20s and 60s pay different premiums.

Gender

Women live on average seven years longer than men. Therefore, other things being equal, women will pay a lower premium for the same coverage than men.

Health

The worse the client’s medical condition, the more expensive the insurance will be for him.

Profession

There are professions with an increased health risk, for example, construction workers or miners.

Leisure sports

If you are into skydiving or rock climbing, your insurance company will charge you a higher premium.

Educational background

People with higher levels of education tend to be healthier and live longer than people without higher education. This factor is inextricably bound up with you income level  

Income level

According to statistics, people with higher incomes are healthier and live longer than people from vulnerable social classes of population.

Smoker status

Giving up smoking makes a huge difference to your premium: you can pay half of what a smoker pays for the same coverage, all other things being equal.

Source: https://www.iol.co.za/personal-finance/insurance/8-factors-life-insurers-use-to-assess-your-risk-01851855-f14a-4dc1-a5d8-073ab8f7c1f9

Photos are from open sources.  

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