What affects life insurance premiums?


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 and smoking. 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 health history. 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.