Many of us believe that people who are healthy and fit, pay the least premium. However, this is not always true, because our current state of health or fitness is not the sole deciding factor. So, which factors decide the premium?
However, old people are asked to pay a higher sum as premium to compensate for the risk incurred by the insurance company, as the probability of claim being filed after a few premiums, is higher. To avoid paying high premiums, it is recommended that you apply for a policy when you’re young.
- Private aviation
- Scuba diving
- Rock climbing
- Bungee jumping
Note that different insurance providers have different opinions regarding which activities are riskier, as compared to the others. Also, your experience, level of skill, and how often you indulge in these activities, are taken into account.
Some insurance companies also consider your gender when calculating your insurance premium. This is because statistics show that women have a higher life expectancy as compared to men, and hence, are required to pay less.