Wood Blocks Spelling Life Insurance

Life insurance is important to have and can do a lot to protect your family from financial harm in the event of your death – but we know that you may have a lot of questions. Saxton Law Firm in Kansas City, MO can help. Questions about insurance premiums are common and many policyholders want to know – what determines the cost of your life insurance premiums? Here is a quick overview of the factors that determine the cost of your life insurance created by Saxton Law Firm.

How Are Life Insurance Premiums Calculated?

Your life insurance premium is the money you pay toward your policy in exchange for life insurance coverage and financial protection. While your insurance premiums are paid on time and in full, your insurance coverage will remain intact. When it comes to life insurance, the bottom line is – insurance providers do not want to pay insurance claims – and the higher the health risk, the higher the premium will be to protect the insurance provider.

Top 10 Factors That Affect the Cost of Life Insurance

The cost of your insurance premium will be determined by a wide range of factors that include your health, lifestyle and your policy itself. Here is a better look at factors that will impact and affect the cost of your life insurance policy.

Family Cutout on Table with Red Heart, Stethoscope and Medical Mask
  • Age – Your age has a significant impact on the cost of your life insurance premiums. The older you are, the higher the risk of severe health issues and the higher the cost of premiums will be.
  • Health History – Your health history may have the single largest impact on the cost of your insurance premium. When you apply for life insurance, you will need to have a health assessment and the more health issues that you have, the higher the insurance premiums will be. 
  • Family Health History – Do you have a history of cancer, dementia, heart disease or diabetes in your family? This history indicates that you may be at higher risk of those medical conditions and results in a higher insurance premium.
  • Weight – Your weight and body mass index (BMI) can have a huge impact on your overall health and can lead to high blood pressure, diabetes, heart disease and other health conditions that translate to higher life insurance premiums.
  • Smoking – Health statistics point to smokers being at higher risk of stroke, cancer and heart disease and while smoking will not prevent you from getting insurance, it will mean you pay higher premiums. Vaping is considered the same by insurance providers.
  • Alcohol – Excessive alcohol consumption can lead to cancer and liver disease and puts the user at greater risk of accidents, injuries and more. These risks will make your life insurance policy costs higher.
  • Job Status –  Do you have a high-risk career? Many careers carry inherent risk that can impact your insurance premium. Occupations that carry more risk and translate to higher insurance costs include roofers, pilots, firefighters, truck drivers, police officers, fishermen and construction workers.
  • Hobbies and Lifestyle – If you live an active lifestyle with high-risk hobbies, it can affect the cost of your insurance. Activities that may be considered high risk by your insurance provider include climbing, auto racing, flying, skydiving, paragliding and more.
  • Mental Health – Have you struggled with mental health in the past? Do you deal with anxiety or depression? Those factors may have an effect on how much you pay for your life insurance. 
  • Policy Conditions – The price of your life insurance premium is impacted by more than just personal health. Elements of your life insurance policy like – length of coverage, type of insurance policy, the type of insurance premiums, your insurance provider and potential life insurance payout – will dictate the cost of your premiums.

READ MORE: Which Insurance Companies Deny the Most Claims?

Do you have questions about your life insurance policy? Do you need help with a denied life insurance claim? Do you want to know what determines the cost of your life insurance premiums? We may be able to help here at Saxton Law Firm. Contact our firm for a FREE case review today!