When insurers are pricing out your life insurance policy, to adjust your premium accordingly, a top to bottom review of your health and lifestyle is conducted. The following factors are what goes into determining how much your policy will cost:
Age. Age is the number one factor that comes into play when pricing out a policy. The younger you are, the less of a risk the insurer is taking— therefore, the premium will be lower.
Gender. Women generally live longer than men. This means that the term of their policy will likely be longer, resulting in a lower premium.
Health. This accounts for your current and past health background. If you’ve been afflicted with health problems in the past, an insurer may see that as a risk, making your premium bump up a few bucks. Any conditions you have that are manageable should be dealt with before shopping for a health insurance policy to help lock in a lower rate.
Occupation and lifestyle. If you work in a dangerous field or live life like a daredevil, you’ll be seen as someone with high potential for death. In this case, the insurer assumes they’ll likely have to payout so your premium will undoubtedly be high.
Drinking andsmoking. Both drinking and smoking have been proven to cause risks to your health — meaning you’ll likely pay double the amount for life insurance.
Family healthhistory. If you come from a line of family who has suffered time and time again from the same ailments, insurers figure that you’ll likely succumb to the same fate, which labels you as a risk.
Driving record. Some insurers may even look at your driving record to see if you’ve been careless behind the wheel in the past.