The Factors Affecting the Cost of Life Insurance

Life insurance is an incredible way to protect those you care about after you’ve passed away. It’s a significant investment in your own future and the futures of your loved ones. Many people already have it, and many more are considering it. The one thing that stops many people is the cost. Can you afford it? People often feel like they’re being misled because they do not understand why the insurance costs what it does. To help you be a little better informed, here are some of the criteria used to gauge the price of life insurance policies. Some of these factors are beyond your control and some are not.

understand insurance costs

Your Age

This is, obviously, the very first consideration. Life insurance policies, much like other insurance, are assessed by how likely someone is to file a claim. It might sound morbid, but when it comes to life insurance, they assess how likely someone is to pass away. Younger people are less likely, so their policies tend to cost less. They’ll likely be paying into the policy for longer than an older policyholder. That drives the price down.

life insurance costs  Age


In most of the developed world, women live for about five years longer than men. Just like age, the insurers consider how long someone is likely to be paying into a policy. Women are likely to be paying into a policy for about five years longer than men, so they tend to get lower rates.

life insurance Gender


Lifestyle includes your profession, your hobbies, and your habits. If you are in a particularly dangerous profession such as logging or ice road trucking, you’ll have to pay more for a policy, since you are more likely to file a claim. Your hobbies can also affect how much you have to pay for your policy; if you enjoy base jumping and swimming with sharks, then you’ll have to pay a little bit more. When considering habits, insurers tend to look at whether or not you use tobacco as well as drugs and alcohol abuse. If any of this is confusing, an online calculator helps you calculate the rising cost of life insurance cover; you just need to input your information based on these factors.

life insurance Lifestyle

Medical History

Your medical history, as well as your family’s, come into consideration when you are being considered for a policy. If you have a history or a family history of disease, you might have to pay more.

Driving Record

Interestingly, your driving record comes into play as well. Obviously, drunk driving charges and reckless driving citations are going to count against you. However, a clean driving record will help you since you are less likely to get into an automobile accident.

Driving Record


Some companies offer life insurance policies with no health check, but they tend to cost a little more. If you do have a health check, they’ll likely check important metrics such as weight, blood pressure, cholesterol, and other important factors. Good results on these tests could keep your premiums pretty low.

life insurance Health

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