Factors That Affect Life Insurance Premiums

Life insurance can help remove your family’s financial burden after you are gone. Aside from this, it is also like an investment. Over a few years, you may get a lower premium on your savings. While comparing the life insurance you get, you may want to consider factors that affect life insurance premiums. Most life insurance companies consider a few factors when determining life insurance rates and premiums. These factors can most often affect your insurance premiums, either positively or negatively.

Factors That Affect Life Insurance Premiums

Various factors, including age, income, gender, and several others influence life insurance. These factors can also help you reduce your life insurance premium. Understanding the factors affecting life insurance helps you better understand insurance quotes and premiums. Improving some of the factors that affect life insurance gives you a better chance of getting lower insurance premiums.

10 Factors That Affect Life Insurance Premiums

Different factors are considered when life insurance premiums are determined. These factors include age, health condition, gender, smoking, occupation and hobbies, criminal record, driving record, and so on. This section of my write-up contains insights into 10 factors that affect life insurance premiums.


Life insurance companies look into your age and life anticipation when evaluating premiums. The younger you are, the lower your monthly life insurance quotes are, while older customers get higher life insurance quotes. Older life insurance policyholders may be limited in the length of their term. Term life insurance can be bought by customers in their 80s, but a shorter-term period will be given. However, customers who are interested in cash-value life insurance policies may get one from some companies whose maximum age is 85 or younger.


There’s an expectation for females to live roughly six years longer than males. Because of this, women pay less on life insurance premiums than men.


Your health has a huge impact on your life insurance premiums. Customers with particular health conditions are considered riskier to insure. This is due to the increased likelihood of a life insurance claim being made sooner rather than later. Your health details are obtained by life insurers through life insurance medical exams. They get your medical records and process drug prescriptions to see what you have taken medications for. This, however, is done with your permission. Some health conditions may affect your life insurance premiums. Some of these conditions include diabetes, any disease, high blood pressure, hypertension, sleep apnea, and depression or anxiety.


Cigarettes are not the only things that affect your life insurance rates. Any form of nicotine you use can get you into smoker rates. You may be added to the smoker rates if you take nicotine patches and gum, chew tobacco, pipes, smokeless tobacco, e-cigarettes, and vape. The rules about life insurance rates are based on the repetitiveness of nicotine a customer uses, which varies by life insurance companies.

Family Medical History

Most life insurance application processes will request your family’s medical records. Your family’s medical history can affect your life insurance rates. If your family’s health record falls under cancer, congenital heart disease, melanoma, and cardiovascular disease, you may get higher premium costs and rates on life insurance.

Occupation and Hobbies

Life insurance applications will ask some questions relating to your lifestyle. These questions include dangerous hobbies and occupations. If your job and hobbies are dangerous, life insurance companies may consider you a risk, causing you to pay more in premiums and rates.

Driving Record

If you have a driving history with DUIs, suspended licenses, and reckless driving convictions, you will be considered high-risk. This can get you higher premiums and interest rates.

Criminal Record

A criminal record can impact your life insurance options, leading to higher premiums and reduced eligibility. Typically, a 10-year waiting period applies after release from prison, and a 5-year waiting period applies after a DUI conviction before you can qualify for a life insurance policy. Chances are that you will be rejected for life insurance if you are awaiting trial, on probation, in jail, or on parole.

Recent Financial Issues

Life insurance regulates bankruptcies when reviewing life insurance applications. Applicants who have had some financial issues, like bankruptcy, on their record within the past two to five years may not be eligible for a life insurance policy. However, this depends on the insurance company you are working with. Some life insurance companies may consider your application if you recently went bankrupt.

Coverage Length and Amount

The type of policy you intend to purchase and the amount of coverage you need are other factors that may affect your life insurance. Term life insurance is the least expensive type of life insurance, while universal life is more expensive than term life insurance, and whole life insurance is the most expensive.