When shopping for life insurance, the premium price that you will pay is dependent on several factors. Below are twelve primary factors that impact your life insurance costs.

• Type and Amount of the Insurance Policy. There is more than one type of life insurance and typically whole life insurance is more expensive than term life insurance, but what you should buy will depend on your goals and needs. In addition, the higher the payout, the more expensive the policy. 
• Payment Schedule. It is common to pay life insurance premiums on a monthly basis, but you can reduce costs if you pay it quarterly, twice a year, or annually.
• Age. The younger you are when you purchase insurance, the lower your costs, which is why younger people shouldn’t wait to purchase a life insurance policy. 
• Gender. On average, women live five years longer than men, which makes women less risky to insure.
• Current Health. The healthier you are when you purchase a life insurance policy, the lower your costs. However, you need to be honest about the state of your health when applying for coverage because if it is later determined that you had a serious illness and failed to report it, the insurance company could deny the claim.
• Smoking and Tobacco Use. If you use any tobacco product you may pay as much as four times more for life insurance than a nonsmoker for the same policy. Why? Smoking shortens your lifespan and increases the risk of serious health issues, which makes smokers riskier to insure. 
• Alcohol Consumption. Heavy drinking is likely to lead to health problems later, which is why you will be asked how much you drink per week or month. The higher your consumption, the higher your rates will be. 
• Weight. If you are obese or just overweight, insurance companies view this as a risk factor and you may pay more for coverage.
• Occupation. You will pay more for life insurance if your occupation is considered risky. While logging workers and deep-sea fishermen are on the top of the most dangerous job list, it also includes airplane pilots, truck drivers, and garbage collectors. 
• Lifestyle and Hobbies. Similar to occupation, if you engage in dangerous hobbies, you will likely pay more for insurance. Sky diving, flying a plane, racing cars, rock climbing, and SCUBA diving are just a few of the high-risk hobbies that can impact your premium costs. 
• Family Medical History. If there is a history of cancers or diseases within your family, including heart disease, diabetes, and high blood pressure, you are considered to be at higher risk of developing them and your rates may go up.
• Driving Record. Although this is a life insurance policy, the insurance company will review your driving record. If there is a pattern of unsafe driving based on citations, you will pay more. The good news is that they only look at the most recent 3 to 5 years so if your driving habits have improved during that time, you will be in good shape.

While there are other factors that may impact the cost of your life insurance policies, these are the key ones that the companies will review. While some factors, such as age and family history, can’t be changed, if you have one of the other ones this doesn’t mean you can’t be insured, just that you might pay more.

Alliance is an independent insurance agency that represents the best providers in the state. This means that we can help you find the lowest rates for the best coverage given any risk factors you may have.