Perhaps, you recently bought a life insurance policy or you’re in the middle of the process. You may be wondering: what factors affect my life insurance rate? After all, you’re paying a lot for coverage. Here are some of the common influences on your life insurance premium.


Yup, your age matters and unfortunately, there’s nothing you can do to change that. Your insurer knows that as you age, the higher your risk of death is. Since they must pay out when you pass away, they often have to estimate when that will be. While age does affect your policy rate, it is not the only factor that matters.


Insurers have to base a lot off of collective statistics and data. In their defense, there’s not much else to go on. Women statistically live longer than men so they will often pay less for a life insurance policy compared to what men will pay for the exact same policy.


How’s your health? What’s your medical history? How healthy you are will influence how much you pay for life insurance. If you have high blood pressure, diabetes, obesity or other medical conditions, then that will affect how high your rate is for your policy. However, if you are active and well, then you may be happy to see that your premium is lower than someone who is not. Take care of yourself—not only will it help you live longer but your insurance will be less expensive.  


What’s your lifestyle like? Are you a smoker or drug user? How adventurous are you? If you’re someone who goes skydiving on a daily basis, expect to pay a bit more. Smoking or drug use will also raise your rate because of their effect on your health. In general, any part of your lifestyle that is high-risk may lead to a more expensive life insurance premium.


Some occupations are considered safer than others. Pilots, police officers and firefighters will likely pay more for life insurance than accountants, designers and software engineers. While your job may not actually have a say in how you die, insurers typically see certain occupations as holding more risk.

Policy Payout (You decide after all!)

You pick how much you want your life insurance death benefit to be. The amount your beneficiaries will receive upon your death clearly affects how much you pay leading up to it. Whole life insurance is always more expensive than a term insurance policy, yet your rates vary significantly based on other factors. Chosen add-ons, like long-term care, will also raise your yearly premium.

These are the major factors that affect your life insurance. Some of them you can control and some you can’t. Understanding these factors will help you better see how your life insurance works and how your premium rate is determined. Compare your options to find the right coverage today.