February 26, 2021

9 factors which affect the cost of your life insurance premium


Crystal Group

“If you have a family, it’s your priority to make sure that they are well -provided for in the event of your untimely death.”

Life insurance products can be expensive, but there are some simple ways of making yourself appear to be a more insurable, low-risk proposition to life insurance providers, without compromising on the cover and keeping premiums down.

9 factors which affect the cost of your life insurance premium

First of all, let’s look at how insurance underwriters view applicants and what factors influence the premium you’ll pay.

How is a life insurance policy underwritten?

Insurance underwriters calculate premiums based on probability and risk. If the underwriter thinks that you will probably live a long and healthy life, you’ll be considered low risk. Your life insurance premiums will be correspondingly less than an applicant who is placed in the higher risk category.


So what’s taken into account by the underwriters?


The younger you are, the lower your premium will be. However, you’re never too old to buy life insurance, and there are lots of affordable options open to you that will ensure you and your family have the coverage you need.

Medical history

If you have a history of health problems, you can expect to pay higher premiums for your life insurance policy.
Some life insurance companies will ask you to undergo a medical exam where your current health is assessed. Generally, people who are physically fit and in good health will pay lower premiums.


If you smoke, you will pay a much higher premium for your insurance than a non-smoker.
Insurance underwriters know that smokers are at risk of death from several diseases that are directly related to smoking. Staying smoke-free for twelve months or longer will dramatically reduce your life insurance premiums.

Alcohol consumption

Excessive regular alcohol consumption will push up premiums. The misuse of alcohol is another known cause of severe health issues, and reducing your intake will not only bring down your premiums, but it will also prolong your life and save you money too!


Obesity is a major cause of diabetes and other serious health problems. Insurance underwriters recognise this when calculating probability and risk. Take a trip to your doctor and ask for advice if you are unsure what your weight should be relative to your height. Losing a few pounds could significantly reduce your premiums.

Extreme sports and dangerous jobs

If you spend your leisure time participating in extreme sports, you will be deemed to be a high-risk prospect by the underwriters. Likewise, if your occupation carries a high element of risk, you will be considered a risky insurance prospect. That said, there can be an alarming degree of disparity in the way that insurance companies categorise these criteria.

You can’t change your occupation, and you shouldn’t be expected to give up a hobby you love merely to reduce the cost of your insurance, but shopping around will probably get you a better deal.
There are specialist insurance companies who deal exclusively in providing cover for those in dangerous jobs and for sports that are considered to be high risk. Their experience in these areas is invaluable, and their premiums are often more reasonable than those offered by a general insurance provider.


It’s best to take out a life insurance policy before you start a family.
Insurance underwriters consider pregnancy to be an increased risk, and some companies will not offer insurance to expectant mothers at all until several months following the happy event. If you are at all unsure about an insurer’s policy on pregnancy, always check before signing on the dotted line.

Family history

If you have a family history of serious illnesses such as cancer, heart disease, or stroke, you will probably pay more for your life insurance.


As a general rule, women have a greater life expectancy than men, which means that ladies will usually pay lower rates for life insurance than gents.

In conclusion

There are many factors that can affect your life insurance quote. Obviously, you can’t do anything about your medical history or that of your family.

However, you can take action to improve your chances of lowering life insurance premiums; quit smoking, lose weight, and cut down your alcohol consumption. Not only will you be healthier, you’ll also save money and attract a cheaper life insurance premium too. It’s a win-win!

See how Crystal can help you

As trusted experts, we offer clear, straight-forward financial guidance and policies.

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