Factors affecting Life insurance premium

Life insurance cover has become a necessity nowadays. It protects your life from any unexpected circumstances. Before choosing an appropriate life insurance plan, you need to consider certain factors that may affect your policy’s premium. Let us understand such factors in detail.

Applicant’s age

Your age is one of the biggest determinants of insurance plan premiums. Those individuals who are young are liable to pay fewer premiums as compared to those individuals who are old. This is because younger age individuals are associated with lesser health-related risks.

Your gender

Most of the insurance companies charge fewer premiums for women as compared to men. Statistics show that women on average live five years longer than men. Consequently, the number of premiums that women would be paying will be comparatively more than men but at a lower rate which is a plus point for them.

Smoking/consumption of alcohol

The people who are in a habit of smoking or consuming alcohol pay higher premiums than those who do not. This is because of increased health hazards as they are more prone to get complicated and life-threatening medical problems in the future.

Family’s medical history

Your family's medical history also plays an important role in determining the premium amount. If anyone in your family has suffered or is suffering from a serious illness such as heart disease or cancer, then, in that case, insurance companies will cover those diseases which will, in turn, drive up your policy's premium.

Your health history

The insurance companies also consider your past health status while determining the premium amount of your policy. So, if you are healthy and fit or have not come across any fatal or chronic illness, then the premium charged in this case would be lesser and vice-versa.

 The tenure of your policy

 The policy itself also affects the premium that you will be paying, the longer the tenure of your policy, the larger will be the amount of the benefit at the time of death, since you’re paying it for that time.

Your profession

If you are in a risky profession such as shipping, transportation, mining, fisheries, etc. the risk of accidental death would be high, as a result, the premium charged by the insurer will be comparatively higher compared to someone who is in a profession where the risk to life is minimal such as desk job.

Lifestyles choices

If you love to take risks or involve yourself in any risk-taking activities such as skydiving, mountain climbing, car racing, etc, then the premium charged by the insurers will be high.


 Obesity is another factor that affects your policy's premium. A person who is obese carries a higher risk of illnesses such as blood pressure, diabetes, heart problems, stroke etc. As a result, the premium charged in this case will be very high.

So, if you are planning to buy a life insurance policy, it would be wise to check and understand all the above-mentioned factors which determine life insurance premiums so that you can easily reduce your premium outgo.