Insurance companies calculate their premiums taking the client health as main risk factor. A person with more health risks must pay larger premiums when compared to a person with better health. It is all most at a direct proportion.

Whether you believe or not the insurance companies are as interested as one’s spouse or one’s mother in their health. They don’t want a client to die early and cause them pay a big sum than that of their paid premiums. They will take all the necessary precautions to keep clients healthy. They consider a client’s blood cholesterol, blood sugar or any other fatal risks more than himself.

The insurance companies take a person’s age, occupation, general health and sex into account when calculating his premium. Clients are asked to disclose all their personal diseases as well as of their family members. In addition the companies may take their own medical tests. After all this they will mark a person as preferred customer or a standard customer and the premium is calculated.

Every company has their own criteria for putting an individual in one of the above two categories.

The general thumb rule is that healthy and young people can pay small premiums as they have many years for premium payment. They are low risk individuals and have less chance of dying and causing them to pay.

Middle-aged people with poor general health or a history of ill heath have higher risk of death. Their age and ill health may damage their ability to live beyond the policy period, then you are a high risk individual. The company understands that you may die at any point so it makes sure that you pay either hefty premiums or buy small policies.