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7 Factors Impacting Life Insurance Cost

It’s true! Some of the factors insurance companies use to determine how much you’ll pay for the cost of life insurance are entirely beyond your control. But, when it comes to lifestyle and health-related criteria, you’re in the driver’s seat. Check out the essential factors underwriters look at when deciding how much coverage you should receive and how much you’ll pay for it.

Determining the Cost

1. Age

A person’s age is the number one factor underwriters look at when determining premiums. That’s why it’s best to buy life insurance when you’re young.

2. Gender

Women, on average, live nearly five years longer than men, meaning they pay longer so enjoy lower rates.

3. Smoking

Smoking puts you at a higher risk for all sorts of health ailments, so it’s a red flag for insurance companies.

4. Health

A medical exam includes height and weight, blood pressure, cholesterol and other key metrics. Some companies offer no exam policies, but you can expect to pay more.

5. Lifestyle

Regular recreational high-risk activities involve risk, along with a few professions, and if that’s you, you may pay more. i.e. skydiving, scuba diving, vehicle racing.

6. Family medical history

It’s your gene pool, and a family history of stroke, cancer or other severe medical conditions may predispose you to these ailments and lead to higher rates.

7. Driving record

The last 3-5 years carry the most weight, so if you’ve improved your driving habits, you may benefit from a more favourable price.

If you have concerns about whether any of these seven criteria will result in your life insurance application denial, talk to your insurance broker. There may be non-traditional life insurance products you can consider.