Factors that Affect Life Insurance Premiums

A life insurance policy ensures the financial future of one’s family members and loved ones. When an adult reaches the time in their life when they decide to invest in a life insurance policy, there will be many plan choices available. Prospective customers should be aware that several key factors affect the monthly premium cost of a life insurance policy.

The Type of Policy:

Whether one selects a term life or whole life policy will affect the monthly premium cost. A term life insurance policy provides coverage at a fixed rate of payments for a limited period (term life policies eventually expire.)  A whole life policy provides coverage for one’s entire life but does tend to have a higher premium cost than a term life plan.    

Coverage Amount:

The higher the coverage amount, the higher the premium because the insurer is taking on a higher risk. 


The younger the insured, the lower the premium cost. The older the insured, the higher the premium cost, as one’s health tends to deteriorate with age. Applying for health insurance at a younger age can help one save money.


Males tend to pay more for health insurance premiums than females, as males statistically have a shorter life span.

Smoking or Vaping:

Insurance companies could charge a customer a higher premium if they smoke, as smoking affects a person’s health and lifespan. Generally, an individual who uses any substance or product containing nicotine is considered a smoker. (However, if you are a smoker when you purchase an insurance plan but quit smoking later, you may become eligible for non-smoker rates from your provider.)


Certain health conditions may affect one’s insurance premium, especially if they cannot be managed or improved by diet or lifestyle changes. Many insurance companies will require a medical exam from a healthcare professional before accepting an individual for life insurance.  

Lifestyle & Occupation:

If one’s hobbies, interests and/or career involves high-risk activities or requirements, the insured will probably pay a higher premium.

If you are thinking about starting a life insurance policy but are unsure of what kind of coverage you would need, contact the agents of Gill Insurance to help navigate your options.

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