• John McTighe-Life Insurance Expert

7 biggest factors that impact life insurance rates



Insurance companies will assess who you are, including the condition of your health and details about your lifestyle and your past.


Here are 7 big factors that affect your life insurance rates:

1. Age: One of the most important rating factors is your age. Unlike auto insurance, the younger you are, the cheaper your premium will be. This is because younger people are generally healthier and thus, less likely to die soon. The most inexpensive life insurance are policies designed for children, under 18.

2. Gender: On average, women live longer than men. Insurers use this data to help price premiums. Insurance companies charge higher rates for men since they calculate premiums based on mortality risk. The rates can vary by as much as 25% in some cases!!

3. Personal health history: As previously mentioned, a medical exam of your mental and physical health is routine when you enroll in life insurance. This is another significant indicator of your mortality risk: those in poor health may pay higher rates than those who are in good health. Some carriers are more lenient for certain conditions such as diabetes and high blood pressure.

4. Smoking: You will face a higher rate if tobacco use is part of your lifestyle. Smokers are considered high-risk clients due to the myriad illnesses exacerbated by smoking. Note: this includes vaping product users.

5. Family health history: Insurers will inquire about your immediate family’s history of illnesses to get an idea of what direction your health will take over time.

6. Career, lifestyle, and hobbies: Some jobs are riskier than others — but the same applies to how you like to spend your leisure time as well. If you’re a pilot with a passion for skydiving and free climbing, your premium may reflect the elevated risks posed by your lifestyle. Some careers at risk include welding and high rise construction workers.

7. Driving, criminal, and credit records: Although these personal factors affect your premium to a lesser extent than the above, these are still used as risk indicators. For instance, you could be charged a pricier rate if you have a history of getting into car collisions. From the eyes of a life insurance provider, a bad driving record is associated with the heightened risk of the policyholder suffering an accidental death.

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