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Factors That Affect Your Life Insurance Premiums

Are you thinking about buying life insurance? Great! When you request a quote, insurance companies review several factors. Some factors, say age, are beyond your control, while you can work on others like lifestyle choices.

By understanding the key factors affecting your insurance premium, you will have an idea of the cost and can take steps to reduce it.


Age plays a huge part in the cost of insurance premiums. Unfortunately, it is not subject to change. Generally, life insurance is cheaper for younger people, with older people having to pay more. That's because old age reflects shorter life expectancy, and the likelihood of getting ill is higher. And beyond a certain age, you may find it hard to qualify for life insurance.

Driving record

Your driving record will significantly impact your insurance premium. A history of drunk driving, overspeeding, suspended licenses, and accidents will likely factor into higher insurance premiums.


Gender is another key factor that influences insurance rates. According to a CDC report, females live longer than males by 5.8 years. As a result, life insurance premiums are lower for females. If you are not male or female, you'll be able to buy life insurance. However, the insurance company may request additional documentation.

The policy

Choosing term vs. whole life and coverage amount are other factors that can affect your insurance rates. Term life insurance, which is often for a specific period of 10, 20, or 30 years, costs less than whole life policies, which last a lifetime.

Whole life insurance also offers cash value and other benefits, making it more expensive. Also, policies with higher benefit amounts typically cost more.

Health status

Insurance companies will look into your health history and request a medical examination to determine your health status. If you have certain health conditions, such as cancer, high blood pressure, diabetes, or a disability that may lead to severe complications, you may have to pay a higher premium.

Family health history

You may be given a clean bill of health after your medical exams. But your life insurance premium rates could be higher if you have a family history of health conditions, especially hereditary illnesses.

Lifestyle habits

Your lifestyle choices can significantly determine how much life insurance premium you'll pay. For instance, smoking or heavy drinking results in a higher premium, even in the absence of a health condition. Engaging in dangerous hobbies such as scuba diving, mountain climbing, and race car driving may also mean paying a higher insurance premium.


Certain occupations pose higher health and safety risks than others. If you are a steelworker, military personnel, pilot, construction worker, or police officer, you will likely have a higher insurance premium.

Get an affordable life insurance policy that's right for you

Now that you know these key factors, you can take steps to lower your insurance rates and select the most suitable life insurance policy. Request a quote, and we’ll guide you in choosing a policy that suits your needs and goals.



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