Factors That Can Affect Life Insurance Premium


Life insurance premium may be subject to a host of factors. Premium offered by popular insurance providers may be vulnerable to substantial Life Insurance Premium Factors, thereby leading the policyholder to shell out higher premiums.

Life Insurance Premium Factors

Generally speaking, a majority of life insurance schemes price their respective policies keeping in mind the physiological contours of the concerned insured. Of course, not all factors are in control of the policyholder. Nonetheless, it is vital to know the Life Insurance Premium Factors to comprehend the situational crises better and therefore make well-found decisions. The following are some of the most common and natural factors that influence the life insurance premium quotes.

  1. Age Factor

    Age is something which is not in control of the policyholder. Consequently, the premium rates for younger policyholders will be lower than those of their older counterparts. Of course, the premium payment policy might have to be altered in case of the death of a young policyholder. However, chances are naturally lower. Therefore, the emphasis is put on the elder policyholder’s health conditions. Generally speaking, insurance companies are of the view that premium rates need to be up in the case of young customers.

  2. Gender Issues

    Gender issues remain the core aspect to be considered so far as premium rates are concerned. Since life insurance companies naturally tend to generalist the prospects of their customers, they usually go by a standard statistical observation: women have a greater life expectancy than men. According to observations, women are found to live five years longer than men. Subsequently, insurance companies are made to act in accordance with the established gender contours. Therefore, insurance companies usually ask women to shell out low premiums for a relatively long period to suit their physiological contours.

  3. Smoking History

    Smoking is one of the most problematic Life Insurance Premium Factors when considering life insurance premium rates. Plus, this is something which is not involuntary. In most insurance companies smokers have to pay extra premium rates compared to non-smokers. Apart from that, it is imperative to keep in mind that smoking is something which tends to make the policyholder vulnerable to a host of corollary ailments which in turn might affect the premium contours. Therefore, should one wish to lower the number of premiums one pays to the insurance company, one can hope to do so only by quitting the smoking habit.

  4. Medical Background

    Medical background is one of the most vital aspects to be considered against the premium policy rates. However, one can do nothing about it. Importantly, one’s medical history must be clarified to the company before securing an insurance scheme. In that case, if one’s medical background throws up instances of critical illnesses such as the likes of cancer one must pay a higher amount of premium. One can do almost nothing about one’s genetic makeup, and therefore the premium rates must shoot up proportionally. When crisis strikes the concerned policyholder can always avail of the host of precious riders provided along with the main insurance scheme to save more. The benefit of riders cannot be undermined. Such riders as critical illness rider and accelerated death benefit riders are exemplary in that they furnish the insured with colossal alternatives to save substantially.

  5. Drinking Issues

    Whether the concerned insured has any drinking issues goes on to determine the scale of the premium rates. As it is with smoking habits, the rules remain the same in this case as well. While applying for a life insurance scheme, the prospective insured needs to make it clear whether he or she has any drinking obsession. Also, a teetotaler should also make it clear whether he or she has any drinking history in the remote past. Accordingly, the premium rates go up proportionally for the drinker as compared with the non-drinker. With the rising levels of awareness these days, life insurance companies are pressurized more than ever to tackle such sensitive issues with care. Vigilance has augmented to rather historical heights. Drinking, like smoking, remains an area of contention.

  6. Profession

    Another crucial aspect to consider while factoring in premium rates is the kind of profession the concerned policyholder is involved in. Essentially, the question of profession arises solely approximated to the same old criterion of risks. If one is professionally safe and sound, insurance premium rates are typically not affected. However, for those working in the likes of hazardous fields such as mining, construction, etc. the risk scale is re balanced altogether. In such cases, it is important to note that the premium rates are bound to rise in accordance with the intensity of risks involved. In such cases, it is once again the riders that must come to the rescue. However, it is also a fact that the predominant labor class cannot always afford to pay for additional riders. The premium rates go up in any case.

  7. Lifestyle Habits

    Many are appealingly in love with ventures associated with the drama of risks. For instance, the lifestyle of mountain climbers, car racers, etc. must be tackled differently by the insurance companies. Such willful participation in risks automatically raises the premium prices considerably. Therefore, lifestyle habits can make a lot of difference to the core premium rates. Of course, those who can have the leisure to venture for risks are obviously from the upper-class strands. Consequently, they are more than willing to pay up extra premiums to cater to their risky ventures. What is more, they might also go without riders.


As can be seen, the aspects above are only some of the fundamental Life Insurance Premium Factors that have a substantial bearing on the life insurance premium rates. Of these, some are involuntary; some are not. In some cases, it solely counts on the will of the premium holder; in others, it is out of the question. All said and done; the core idea is to take up such policies as are in sync with one’s lifestyle contours.


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