life insurance

9 Factors That Affect Life Insurance Premiums


Many people overestimate how much life insurance costs. However, not everyone will pay the same amount for it, and lots of variables affect how much you’ll pay.


Here are nine factors that affect your life insurance premiums and some information about what you can do to get the best rates.


1. Your age. You’re never too old to purchase life insurance, but age will affect how much you pay. Your rate will be lower if you purchase a policy when you’re younger.


2. Your gender. On average, women live longer than men. As a result, they tend to pay lower premiums.


3. Your lifestyle. Smoking, heavy alcohol consumption and engaging in high-risk activities and hobbies (such as skydiving, rock climbing and scuba diving) will increase your insurance premiums. Reducing your alcohol consumption and quitting smoking can lower your rates.


4. Your driving record. Many companies will focus on the last three to five years of your driving history to determine your risk of accidental death. If you have a bad driving record, you can still work on becoming incident-free to get more favourable rates.


5. Your occupation. Risky occupations are associated with a higher chance of accidental death. Being a race car driver, a pilot or a firefighter can increase your life insurance rates.


6. Your current health. You’ll probably have to undergo a medical exam to assess your current health and look for issues that could lead to health problems down the road. Regular exercise and eating a healthy diet can lower your blood pressure and improve your general health.


7. Your medical history. Any history of health issues can result in higher premiums. Your family’s medical history can also affect your rate. If you have a history of having a serious illness such as cancer, you may need to pay more for your life insurance.


8. Your weight. Your height-to-weight ratio can affect your premiums. This is because being overweight or obese increases your risk of having health problems in the future. Consequently, losing weight can help lower the cost of your life insurance.


9. Your policy. Not all life insurance policies are the same. You’ll pay more for a long-term policy than a short-term policy. Your rates are also affected by the amount of coverage you choose. The higher the amount of your death benefit, the more you’ll have to pay.


Affordable insurance in Nova Scotia

Eisenhauer Insurance Inc. can help you secure great rates for home, life, business and high-risk car insurance. Our licensed brokers can help you find the right coverage for your needs. Contact us today for a free quote.