Life insurance premiums are of paramount importance to the business model of life insurance companies. And the life insurance premiums of every policyholder are different from others. This means that even if you and your loved ones are applying for the same life insurance policy, your life insurance premiums will be different. Why? This is because of the following factors:
Your health status matters a lot to life insurance service providers. And the more critical your health condition is, the higher your life insurance premiums.
Women have a higher life expectancy than men. And women are likely to pay lower life insurance premiums than men, assuming both are in good health condition.
Family medical history
Some diseases are hereditary. That’s why during the underwriting process, life insurance companies are concerned your family medical history. If you have a family history of stroke, high blood pressure, cancer, or other debilitating genetic diseases, your life insurance premiums will be increased.
As a rule, the younger you are, the lower your life insurance premiums. Older people have a low life expectancy and it is believed they will die earlier than young people.
Life insurance companies are interested in your driving habits. If you are the type that drives recklessly, you should expect nothing but higher life insurance premiums.
Do you smoke cigars, marijuana, cigarette, or other stimulants? Do you drink excessive amounts of alcohol? Or are you working in the mining, transportation, fishing industry? People who participate in risky activities or dangerous professions are likely to contract diseases, get injured, or die prematurely. Life insurance companies will charge you more premiums if your lifestyle is fraught with risks.