The Gerber Life Parenting Blog

What Can Lead to Higher Premiums When I Purchase Life Insurance?

June 4, 2015

No Smoking SignLike snowflakes, no two premiums are exactly alike.

Your life insurance premium won’t be the same as your sister’s premium, and both will be different from your mother’s premium. Since premiums are dependent on a number of factors associated with the insured, they will be different for just about everyone. Of course, most people want to avoid a high life insurance premium if possible, but many probably aren’t sure what is factored in to determine their monthly payment.

If you are someone that has wondered about this, wonder no more. Here are some factors that may lead to a high life insurance premium:

  • Gender – On average, men pay higher premiums than women do. This is because, as a whole, men are at higher risk for certain diseases, have shorter lifespans, hold more dangerous occupations, and live higher-risk lifestyles.
  • Smoking – If you are a cigarette smoker, you’ll be paying a higher insurance premium than you would if you were a non-smoker. Even if you only smoke one cigarette per day, you’ll most likely be placed in the same category as those who smoke more.
  • Age – When calculating a premium, insurance companies will factor in the age of the insured. Due to this, you can almost always expect to pay lower premiums at younger ages.
  • Lifestyle Choices – Although you may love rock climbing or skydiving, these extreme hobbies may lead to high life insurance premiums. Since these activities increase your risk of death, they will also increase your premium.
  • Health – Poor health habits affect your body, as well as your life insurance premium. If you’re caring excess weight, are a heavy drinker, or have a pre-existing medical condition, you will likely have a higher premium than someone in better health.

Although all of these factors will be considered in determining a life insurance premium, they are not the only ones. Make sure to discuss with your insurer how your premium was calculated, especially if you have questions.

Remember, premiums aren’t set in stone, either. If you quit smoking or lose weight and keep it off for a specified time, you can ask for a reassessment of your health, which could lead to a lower premium.

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