Factors affecting Insurance Premiums

There are a wide variety of factoring affecting how insurance premiums are calculated. Certain types of insurance are generally more expensive than others. In most cases, factors such as age, gender, face amount of insurance, coverage amounts, smoking or non-smoking and other health factors affect insurance premiums.


Generally speaking, younger people pay less in insurance premiums for life insurance products including life insurance, critical illness insurance, disability insurance and long-term care insurance.


Women on average live longer than men, which means they generally pay lower rates for more life insurance based products.†

Face Amount of Coverage

The higher the amount of coverage for life insurance the greater the insurance premiums. In addition, the higher the benefit coverage for products including critical illness, disability and long-term care, the higher the premiums.


Non-smokers pay less for life insurance, critical illness insurance, disability insurance and long-term care insurance. Individuals, who quit smoking for a period of one year, or two years in some cases, can obtain cheaper insurance coverage.


Drinking wine in some studies has shown potential health benefits. However, heavy consumption of alcohol is definitely not very healthy. Individuals, who drink more or heavily will pay higher rates for insurance coverage in most cases.

Health History

Insurance companies will look at your medical history in most cases. If your medical history shows any history of disease or any other health issues, you most likely will be faced with higher insurance premiums.†

Current Health

With most types of insurance, depending on the type of coverage and the amount of coverage, individuals will have to go through a medical exam. The medical exam, which can include blood work analysis or urine analysis will look for health issues including high blood pressure or hypertension or other health issues that may be indicative of future problems. Individuals in good health will see cheaper insurance rates.†


Individuals will pay higher costs for all types of life insurance products if they are overweight or considered obese. Insurance companies base weight on a height to weight ratio scale, taking into consideration age in many cases. Individuals who are overweight or obese face more medical issues, and thus high insurance rates are applied in the majority of cases.


Certain types of occupations are considered more dangerous or risky than others. †Therefore certain occupations will have higher insurance rates than others. In many cases, an individualís occupation can even be a primary reason for the denial of insurance from an insurer.

Family History

Family history of illnesses such as heart disease, stroke, diabetes and cancer, which can be hereditary, will in many cases cause individuals to pay more for life insurance, critical illness insurance, disability insurance and long-term care insurance.

Additional Riders

Insurance riders, which are features and a form of added coverage, will cause insurance premiums to increase. Multiple riders can significantly increase insurance premiums, but this increase in insurance premiums is the result of added coverage.

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