6 Factors Affecting Life Insurance Premiums

Are you thinking about buying life insurance? If so you may be wondering how much it will cost.

The reality is that the life insurance premiums depend on a number of factors that vary from person to person so let’s look at 6 key factors that will impact the premiums you will need to pay.

These factors either relate to the policy itself or the policy holder i.e. you. Let’s first take a look at the policy considerations that impact premiums.

The Policy

The type and term of the life insurance policy.

Term life insurance is usually cheaper than permanent life insurance, as it only covers you for a specific period of time or until a certain age. The longer the term, the higher the premiums. Permanent life insurance, such as whole or universal life, provides lifelong coverage and may have additional benefits, such as cash value or investment options, but also comes with higher premiums.

The amount of cover i.e. the value of the payout you want.

The amount of coverage you choose for your life insurance policy will also determine how much you pay in premiums. In simple terms, the more coverage you want, the more you pay. You should choose a coverage amount that meets your financial needs and goals, such as paying off debts, replacing income, or leaving a legacy.

The Policy Holder

Life insurance is designed to offer financial security to your loved ones in the event of your death. As you can imagine how you live your life can influence your mortality and can also influence the premiums you’ll need to page, so let’s have a look at some of these factors.


One of the most obvious factors affecting life insurance premiums is your age. The older you are, the higher the risk of dying, therefore the higher the premiums. This is why it is advisable to buy life insurance when you are young and healthy, as you can lock in lower rates for a longer period of time.


Another important factor influencing life insurance premiums is your health. To secure a policy you’ll be asked you to undergo a medical exam or answer some health-related questions. Your medical history, current health status, family history, and any pre-existing conditions or chronic diseases are all taken into consideration. The healthier you are, the lower the premium. If you have any health issues that increase your mortality risk, such as high blood pressure, diabetes, heart disease, or cancer, you may have to pay more, or it could be that these pre-existing conditions are excluded from coverage.

Lifestyle Choices.

Your lifestyle choices can also have an impact on premiums. For example, if you smoke, drink excessively, use drugs, have a poor diet, and don’t exercise, you’re putting your health and life at risk. These less than healthy behaviours increase your chances of developing serious illnesses or dying prematurely. On the other hand, if your a non smoker, moderate your alcohol consumption, avoid drugs, and adopt a healthy lifestyle, you can lower your premiums and improve your well-being.

Occupation & Hobbies.

Your occupation, recreational sports, and hobbies can also affect premiums and the cost of insurance coverage, depending on how risky or hazardous they are. Some jobs expose you to higher chances of injury or death, such as firefighters, police officers, construction workers, miners, or soldiers. This is also the case with recreational activities like skydiving or mountaineering. If you work or play in high-risk situations you may have to pay higher premiums or buy a special policy that covers your specific risks.

As you can see, there are quite a few factors that get taken into account when determining the life insurance premiums you’ll need to pay.

We’re to help and offer a free, no obligation service to assist and guide you through the options to find the best policy that meets you needs, lifestyle, and budget. so give us a call today.

Disclaimer: The information contained in this blog is an overview and general information only. It may not be relevant to your individual circumstances. Before making any investment, insurance or financial planning decisions, based on information provided in this blog, please use your discretion and consult a professional adviser first. You can read our full disclosure statement here.

170+ 5 Star Google Reviews