Understanding the Different Factors That Affect Your Life Insurance Rates

Updated on May 6, 2020

While there are all sorts of reasons why people take out a life insurance policy, the most fundamental reason is to make sure that there are funds available in the event of the death of someone who has a financial obligation to someone else. We all want to protect our loved ones in situations like this, however, what you may not be aware of is the key factors that can affect your life insurance rates. To give you a better idea of your options, here are a few reasons why your policy could cost more.


When establishing a life insurance rate, your date of birth is the first factor that is taken into account. With that in mind, younger policyholders will pay lower premiums. As you get older, the likelihood an insurer will have to pay out on your policy increases, resulting in your premiums increasing too.


In general, women are known to live longer than men. In America, the average life expectancy for men stands at 84.3, while women are a little higher at 86.7. This difference means that women will generally pay out less for their life insurance over men.

Health History

Before taking out a life insurance policy, you may find that the insurer asks for a medical examination first, as well as access to your health records to ensure you haven’t got any health conditions that could affect the policy. If you have a family history of cancer or heart disease, this will increase your premiums. There are other factors that insurers will look out for, such as your weight, blood pressure, and cholesterol levels. Other health issues insurance companies will look out for is Diabetes.  In fact, life insurance for diabetics will usually be more expensive compared to those who do not live with a chronic illness.


The type of occupation you have can also play a huge part in how much you pay out for life insurance. Whether you’re working in a field that exposes you to toxic chemicals or you work in law enforcement, which requires you to perform dangerous duties, insurers will ask about your work so it’s important to be honest and upfront. 


We’re all aware of the health risks that are linked with smoking, as well as the risk of developing conditions like coronary heart disease or a heart attack, therefore, if you’re a smoker, you will notice an increase in how much you have to pay out for your life insurance policy. If you have managed to stop smoking since taking out life insurance, make sure that you call your provider to check whether your nonsmoker status will make a difference, as it could lower your rate.


If you’re a thrill-seeker that loves to spend the weekend skydiving or racing cars, these types of high-risk hobbies may result in higher premiums. When taking out life insurance, it’s important that you let your insurer know the types of hobbies you have, as some activities may not fall into this category. To ensure you’re getting the right deal, it’s best to shop around where you can get quotes and compare a range of providers.

Finding a Policy

Now you have an idea of the types of factors that could affect your life insurance policy, it’s important that you find an insurer who understands your needs. For example, if you are looking at law enforcement careers and life insurance, you will want to find a provider who gets you the best rates possible.

Purchasing the right life insurance policy is important. If you feel like you’re paying over the odds, your age, occupation, or gender could play a huge part. Understanding the cost factors that alter life insurance premiums, and making small but subtle changes to your lifestyle, such as losing weight or quitting smoking can help ensure you find a policy that’s right for your needs. 

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