The easiest and fastest way to reduce life insurance premiums is to work on each individual factor that influences the premiums. This blog post presents the 10 main factors all insurers consider when deciding on the cost of coverage.

In general, the younger and healther you are, the lower your monthly premiums will be.

life insurance risk

1. Age

The older you are, the higher your premium will be. It is connected to the mortality table (some refer to it as a life table), where the probability of death is calculated. The younger you are, the higher your chances are that you will outlive your term. A healthy 30-year-old will most likely outlive the term of his or her policy. Therefore, the insurance company will not need to pay out a lump sum.

The older you get, the higher your chances are that you will die during your life insurance term, and the higher the chances that the insurance provider will need to pay your beneficiaries. 

2. Gender

Insurers are not allowed to charge different premiums based on gender only. Although n average, women live five years longer than men. As a result, life insurance premiums could be lower for women because they are paying the premiums for a longer period of time.

3. Health Status

Life insurance companies set rates in a process called underwriting.

Underwriting is the process of calculating the total risk posed to an insurance company by someone that takes out life insurance.

One of the main factors considered in the underwriting process is health. The healthier you are, the more chances you have for a long life, and there is a lower chance that the insurer will need to pay out your policy. 

4. Medical History

If someone in your household has a history of health problems, insurance companies will identify this as a predictor of your future health. 

Premium rates are estimated based on your risk. Contribution rates increase in the event of serious health problems or increased risk of death.

medical history

5. Smoking

Smokers have higher life insurance premiums than non-smokers. This is due to the health risks posed by tobacco consumption - and this includes vaping as well. Experience shows that smokers are more likely to die prematurely or become seriously ill.

6. Drinking


Essentially, the insurance companies only make money when they don't have to pay death benefits. When you apply for insurance, your risk of dying during the policy term is assessed, and your premiums are set accordingly. 

This means that people with no health problems will pay less in premiums than those with a history of, let’s say, heart disease, and people with a history of alcoholism will pay more than those with no health problems.

7. Lifestyle

Lifestyle plays a huge role in figuring out your coverage rates. Insurers provide decreased rates to people with a healthy way of life - every now and then, they even offer reductions for keeping a clean bill of health. If you like extreme sports, your premiums will be higher due to a higher risk of premature death. Frequent travelling can also increase your premiums.

Extreme sports and frequent travelling are the two most common examples of your lifestyle affecting life insurance premiums.

8. Occupation

Your profession is a large part of your life and can have a massive effect on your life insurance coverage. If your job is considered dangerous and deemed high-risk by life insurance companies, it is likely that you will not get a cheap policy offer. 

Having a risky career is not going to prevent you from getting quotes for policies; however, it could raise the amount you have to pay in premiums.


9. Weight (BMI)


Your weight can have an effect on your life insurance cover costs, as it is a fact that insurance companies use weight as a regular indicator of one’s fitness level.

Basically, life insurance providers use the same strategy as medical insurance companies - meaning, they use the BMI (Body Mass Index) scale to decide how healthy you are.

No surprises here, even though you probably already know that this scale isn’t one hundred per cent accurate. BMI doesn’t take into account the family health history (genetics), bone density, and normal muscle mass. However, all of this is related to your fitness level and your BMI.

10. Type of life insurance policy

Another big factor that will determine the cost of your life insurance is the type of policy you buy and the amount of coverage. Generally speaking, term life insurance is the least expensive, universal life costs more than term life, and whole life insurance is the most expensive.

You can also buy life insurance riders, which are add-ons that help fill coverage gaps. For example, you might buy a “waiver of premium” rider that lets you stop paying if you become disabled while keeping the coverage in force.

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