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Life Insurance

The Key Factors That Could Affect Your Life Insurance Premiums

29 Apr 2021

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

If you want to take out Life Insurance, it’s helpful to understand the costs. Many things can drive premium prices up or down. Here are some of the most important.

When shopping around or comparing Life Insurance quotes, most people get several quotes from different insurers. They want to keep insurance premium payments to a minimum, whilst also considering the features and benefits of each policy.

Base policy rates differ from one provider to another, but changes in your premium usually depend on a series of important risk factors.

Each insurance company may set a different value on those factors. Yet, the majority of companies do rely on many similar elements when calculating premiums. Here are some of the things that could affect your Life Insurance cost​.

1. Your Medical History (And That of Your Family)

Not all insurance companies show the same level of interest in your family’s medical history, but all of them do it to some degree. It’s not just your own personal medical history that can affect your Life Insurance cost​.

Most insurers like to know if there’s a history of premature deaths in your family tree. A history of health or severe hereditary conditions can influence your policy premiums. That’s because certain conditions may dramatically reduce your life expectancy.

In those cases, medical history could impact the premium, in addition to other factors that insurers also consider.

2. Your BMI

Did you know that the average Life Insurance cost per month can also vary based on your BMI or Body Mass Index?

Your BMI may indicate certain risks that might influence your premium. For example, being overweight may cause you to pay more than an average weight person your age. It may also matter how much of your life you’ve spent with weight issues. Being overweight can sometimes indicate an impending medical condition.

In some situations, being overweight can indicate a “riskier” lifestyle. In general, extra kilos might have an impact on your health. That’s why some insurance companies choose to also factor this into their calculations.

3. Tobacco Use

Almost all insurance companies ask if you smoke when you apply for ​Life Insurance quotes​. Tobacco consumption or the use of e-cigarette and vaping products can have a dramatic impact on your health. Insurers will most likely consider this when calculating premiums.

When you smoke, you open yourself up to more health problems than the average non-smoker.

This may affect your Life Insurance policy premiums. It follows the same logic as with your medical history.

Yet it may be possible to get a better deal if you can prove that you’ve quit smoking. Having smoked in the past may still matter, but being a non-smoker when you apply for your policy could possibly lower your premium. Again, this can vary significantly from one insurer to another.

4. Your Lifestyle and Hobbies

It may seem odd for insurers to ask about your lifestyle and hobbies. But lifestyle choices say a lot about who you are. If you’re a thrill-seeker and engage in dangerous activities, that may affect your lifespan and your health.

This type of stuff matters to Life Insurance companies. For example, professional race car drivers may have to pay higher premiums than college teachers. That’s because there are more risks involved in racing than in interacting with students.

If you have a dangerous profession or hobby, you may end up paying more for your Life Insurance. However, many contributing factors determine your premium. Not smoking, being younger, and having a good medical history may also influence your quote.

5. Your Age

Your age is a big determining factor for your ​Life Insurance cost​. More precisely, the age at which you start your Life Insurance.

The younger the policyholder, the more likely it is that they’ll pay the insurance company for many years. This doesn’t mean that you have to get a Life Insurance policy as soon as possible. However, age is one of the critical factors that will most likely affect your premiums.

6. Your Travel Activities

A Life Insurance company may factor in your travelling habits. Generally, how often you travel doesn’t matter as much as where you travel to, or how you travel, for that matter.

Most insurers consider where you go and what you do when they’re processing your application. In a way, this type of factor usually ties into your lifestyle choices. For example, how often do you go on holidays in dangerous locations?

Or what about your work? Is travelling to war-torn countries part of the job description? Your behaviour and activities overseas may matter as much as your actions at home. Insurance companies like to get as much information as possible about potentially dangerous aspects of your life.

If You Can Affect the Cost of Premiums, Why Not Do It?

People who are considered “high-risk” quite often end up with higher premiums on their Life Insurance.

Learning about the factors that concern insurance companies may help indicate certain things that need adjusting on your part. Maybe you want to improve your chances of leading a long life. In this case, knowing your insurance risk factors might be helpful.

Do you need Life Insurance?

That is a question that only you can answer. You may choose to get some professional advice, or to carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.

Please do not use this information as a substitute for medical advice. This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.

It’s a good idea to get a proper quote and deeper assessment of your choices.


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