Factors Affecting Your 2021 Life Insurance Premium • [List] • Benzinga •



Everyone needs life insurance. It is one of the best ways to protect the future of your family. However, if you make the wise decision to purchase life insurance, you are probably wondering what factors will affect the cost of your life insurance premium.

Understanding the factors that affect your rates will help you compare life insurance policies. Here are some factors that can affect the cost of life insurance.

List of factors that affect your life insurance premium

  • Age and gender
  • Type and amount of coverage
  • Credit-based insurance rating
  • Conduct and criminal record
  • Exercises and eating habits
  • Lifestyle and leisure
  • Occupation

How age and gender affect your life insurance

Life insurance companies have underwriters who take into account an individual’s risk factors to help determine the cost of life insurance for that person. Younger, healthier people get better rates of life insurance than older people with pre-existing conditions or who are prone to developing conditions or illnesses. If you’re in your twenties with no pre-existing health issues, now is the best time of your life for affordable life insurance rates.

Gender also plays a role in the cost of your life insurance. According to National Vital Statistics Report data provided by the Centers for Disease Control and Prevention (CDC), American women live to about 81 years and American men to 76 years. Because women tend to live longer and cost life insurers less, they have cheaper life insurance rates.

How your coverage affects the cost of your life insurance

Life insurance is available in different types and amounts of coverage. The more coverage you buy, the more expensive the coverage will be. Next, you need to consider the cost of the different types of life insurance.

There are 2 basic types of life insurance: whole life insurance and term life insurance. Whole life insurance (sometimes called permanent life) covers you your entire life and is the most expensive type of coverage. Term life insurance policies are available for a specific period, such as 10, 20, or 30 year policies. Term life is more affordable and may be a good option for you if you are on a budget. In addition, some term life insurance policies offer the option of converting to a whole life policy at the end of the insurance period.

Variants of whole life insurance called universal life insurance and variable life insurance are also available. These policies have a savings component that is added to the cash value of the policy. Additionally, some universal life insurance policies offer flexible payment options, so they may be more affordable than a whole life policy, but generally more expensive than term life insurance.

Credit-based insurance rating

While your credit score shouldn’t directly affect the amount you pay for life insurance, your credit report may contain information that could affect your credit insurance score and your rates.

Your credit-based insurance score is rated by specific agencies and is based on factors such as past bankruptcies, income to debt ratio, driving record, and your insurance history. For example, if you have a history of missing payments, you might qualify for a higher rate for life insurance. Your credit-based insurance score examines the factors that may make you riskier to insure.

Your criminal record and criminal record

Past traffic violations can affect life insurance rates. A life insurer can look at the past 5 years of your driving record to determine the number of recent offenses you have committed. Unfortunately, multiple traffic violations could mean you won’t qualify for the best life insurance rates.

The impact of a criminal record on your life insurance premium will depend on the type of offenses committed against you. Crime will rarely increase the cost of life insurance. However, a felony conviction could make it nearly impossible to find life insurance, and if you find it, it could be costly.

Exercise and eating habits

Your history of pre-existing illnesses may make your life insurance more expensive, but did you know that the type of food you eat could also affect the cost of your life insurance? You might be wondering why, it’s because unhealthy foods can have long-term harmful effects on your health. You may want to think about what you put in your mouth before purchasing life insurance.

You could also be denied life insurance if you have ever used drugs, or it could make your life insurance premium very expensive. If you answer yes to drug or alcohol use in the present or in the past, you may not be eligible for the best life insurance rates.

High-risk professions and lifestyle

This one is pretty obvious to most people. If you are a skydiver, your life insurance premiums will be higher than those of an accountant, although the stress level of an accountant can get quite high during tax season!

Some occupations considered high risk by life insurers and subject to higher rates include roofers, pilots, commercial fishermen and loggers. Similarly, these hobbies are considered high-risk by life insurance companies: bungee jumping, racing car driving, rock climbing and hang-gliding, for n to name a few.

Smoking and drinking are also life choices that life insurers consider dangerous risks because of the ailments and associated illnesses they can cause.

Your prescription history and life insurance

As with pre-existing conditions, insurance companies may also consider your prescription history when determining the cost of your life insurance. For example, if you are taking a drug known to treat an illness the company considers high risk, you might consider a higher life insurance premium. The insurance provider could look back up to 10 years in some cases.

Endorsements and life insurance premiums

Life insurance contracts, in particular whole life insurance contracts, are customizable. You can add coverage options that add additional benefits, but they also increase the cost of your life insurance policy. Here are some common types of life insurance riders:

  • Guaranteed insurability rider: Allows you to purchase additional coverage for the duration of the contract without medical examination
  • Rider accidental death: Additional coverage you can add that will pay a higher benefit amount if your death is the result of an accident
  • Family income rider: Pay your family in installments over time to replace your regular monthly income after your death
  • Exemption from the premium rider: Allows you to stop paying your premium if you become permanently disabled or lose your income due to an accident or injury

Travel and life insurance

Domestic travel shouldn’t affect your life insurance premium. However, frequent trips abroad could increase your premium. From a life insurer’s perspective, the more you travel, the more you expose yourself to potential risks that could affect your health. In addition, if you are frequently abroad, it could cause an underwriter to question your residency status. Most states, except Florida and Georgia, allow insurers to use travel as an underwriting criterion. Other states have laws that do not allow life insurers to take adverse action due to legal travel. These states include California, Connecticut, Colorado, Illinois, Maryland, Massachusetts, New York, Oklahoma, and Washington.

Best Life Insurance Companies

With life insurance, you want to choose a provider that offers the best coverage at the most reasonable rates. If this seems like a daunting task, you can relax. Compare the quotes below to find the best coverage.

Get the best rates

Life insurers look at several factors to determine your rates. So how do you get the best price on life insurance? First and foremost, buy while you are in your 20s and still be healthy for the best life insurance rates. You can also give up unhealthy habits like drinking alcohol, smoking, and fatty foods to make yourself riskier for life insurance companies.

Frequently Asked Questions

Can I apply for life insurance as a business expense?


Can I apply for life insurance as a business expense?


chelsi walker


It depends. In some cases, you can claim life insurance as a business expense. If you are self-employed, that doesn’t work. The IRS does not allow this. However, if you are the direct or indirect beneficiary of a life insurance policy, you can deduct it as a business expense.

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Can you have 2 life insurance policies?


Can you have 2 life insurance policies?


chelsi walker


There is no rule against having 2 life insurance policies. In fact, it may be a good idea to purchase additional coverage. If you need more life insurance than the company offers, there are several life insurance policies you can purchase. For example, you have a permanent life insurance policy of $ 300,000, but you want life insurance coverage of $ 400,000. You can buy a term life insurance policy for the additional $ 100,000.

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When you need life insurance, look no further than Sproutt. The company can offer you lower rates depending on your lifestyle, preferences and needs. Sproutt doesn’t forget real people along the way. Instead, it allows for a seamless and seamless way to match you with the insurance coverage that matches your needs.


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