So how to calculate the insurance premiums: According to the insurance company Insurance premiums are directly proportional to your risk. So, you must keep your risk factor in mind when calculating insurance premiums.

In fact the insured person's health is the risk factor. The insurance company would like to take all the precautions if you are not dieing prematurely otherwise they will have to compulsorily pay a lot more than the premium you have contributed. That is why the insurance company is interested in you that you are not suffering from cholesterol, diabetes or any other life-threatening diseases.

The insurance company is assessed the risk during the time of issuing a policy. The risks assessed by taking into account your age, sex and general health. Even you have to mention all the diseases that you have or diseases that run in your family. In addition to this the company conducts the medical examinations, if required. Then a premium is fixed for you after all the data is preferred or favored with you as a standard customer.

There are two types of categories slotted to their own criteria by each company. In fact the thumb rule is the company will fix a low premium for you if you are young and healthy. So that you can able to pay your premium for along year, that which suggested your lifestyle. Then you will became the risk individual in the eyes of the company’s norm.

You will became high risk individual if you are middle-aged, with either poor general health or a history of ailments or anything else in the eyes of the company. The insurance company makes sure that you will be unable to pay your premium and you may die before the policy period. That is why the company persuades you to buy small policies or pay large premiums.

As for the company norms women typically pay lower premiums because they supposed to live longer than men. But in case of the men they have shorter life spans so they will get annuity at lower rates. Any how some insurance companies are there who are flexible enough to re-evaluate your health and premium amounts a few years after you buy your policy. There is a chance of lower amount of premium to pay if they find that your lifestyle and health have improved remarkably or you have been cured completely of a life threatening disease.