Who Are You Leaving Behind?

What Factors Impact Your Life Insurance Premiums?

Are you thinking about getting life insurance, but wondering how much it is going to cost you? If so, it helps to know what factors play a role in how much you pay for life insurance quotes.

Age

One of the biggest factors that determine your premiums is your age. As you can imagine, someone that is younger has a lower chance of passing away due to natural causes, which means that you are less likely to use the death benefit of a term life insurance policy. This can result in paying less for the policy because you're considered lower risk. As you get older, your risks tend to increase because you're more prone to disease and more likely to use the death benefit.

Gender

Were you aware that women tend to live longer than men? Even though on average women only live a few years longer than men, those years play a role in life insurance premiums. Men tend to pay a little bit more for their life insurance as a result of their lower life expectancy. This is because studies have shown that men tend to have different lifestyle behaviors that put them more at risk. 

Smoking

Anybody that is a smoker will automatically be viewed as a higher risk for a life insurance policy. Smoking makes it more likely that you'll get a fatal disease, such as cancer, and your life insurance provider will reflect that by requesting a higher premium for life insurance. It is possible to make lifestyle changes and give up smoking, but you'll need to let your life insurance provider know to see if that influences your premium.

Health

You will be expected to submit medical records and get a medical exam when you apply for a life insurance policy. The insurance provider wants to know what potential risk factors you have in relation to your health, which will impact how much you pay for life insurance. In addition, your family medical history can play a role if you have family members with health conditions that are known to be genetic.

Lifestyle 

There are many aspects of your lifestyle which can contribute to a higher life insurance premium, such as your hobbies and occupation. For example, a construction worker will have higher premiums than an office worker. A person that drives a motorcycle will have higher premiums than someone that drives a car. 


Share