Factors That Impact Life Insurance Premiums

Posted in Life Insurance

Factors That Impact Life Insurance Premiums

The cost of life insurance premiums can often be intimidating. The factors that impact the price may surprise you!

The following factors detail what influences your lifestyle and personal premiums.

Personal Factors

AGE: Younger people are typically cheaper to insure if all other factors remain the same. This is why it is a common recommendation to get a policy sooner rather than later.

HEALTH HISTORY: If you have a history of any ongoing health issues, or chronic disease this will impact your pricing, as well as eligibility for certain products.

FAMILY HISTORY: Similar to your personal health history, if your family has a significant history of disease, this may impact your premiums for life insurance.

CURRENT HEALTH: Although health history is important, so is your health at the time of the application. Companies will often require a medical exam from a nurse, or perhaps just some simple blood work to assess your current health.

GENDER: Since women typically live longer than men, they will often receive lower life insurance rates

Lifestyle Factors

YOUR CAREER: Those with ‘riskier’ careers will find their premiums affected. This has to do with the risk of accidental death – you can see how it would be higher for a high-rise construction person compared to a bank teller.

SMOKING & DRINKING: These life style choices have an impact on your health and excessive alcohol consumption and being a smoker will definitely raise your insurance prices.

LEISURE ACTIVITIES: Hobbies like race car driving, or sky diving may increase your rates and coverage eligibility with some companies.

Type of Coverage

Lastly, the type of policy and the amount of coverage you are looking for will also impact your rates.   A policy that is valid for your whole life with a payout of $1 million is going to be more expensive than a policy that is in force for 10 years (Term 10 policy) with the same payout.

Contact our team to discuss your coverage needs and your budget! It’s never too early or too late to get informed

Book a no-obligation insurance consultation.

Insurance can be tricky. Let our insurance experts walk you through the ins and outs before you buy.

Contact The Tregunno Team