Want to get life insurance? Want to protect your loved ones financially? Want to get the lowest life insurance costs out there without breaking the bank? Well, all of these questions are understandable. In fact, understanding how life insurance works and what it has to offer is essential, because insurance policies like these can be confusing.Therefore, you should consider the possible factors, before getting a life insuance policy. In this article, we’ll explore the 6 common factors that revolve around the key factors that affect life insurance costs, and what you need to expect before you apply.

What Kind Of Life Insurance Policy Do You Need?

“Life insurance coverage comes in several different types,” says Eleni Bourgeois, a business blogger at Next coursework and Writemyx. “And, all of these types have different costs. Whether you apply for a term life insurance or whole life insurance policy, you have to take into account how long and how much they’ll cost.”

For example, term coverage is temporary with a set expiration date. So, if you outlive the term, the coverage ends, especially if it’s short-term. A longer term lasts longer; though, it’s more expensive.

Whole life insurance, on the other hand, can last your entire life, as long as you keep paying the premium, which can be more expensive than term life insurance policies.

What Is The Death Benefit Amount?

The death benefit is the primary benefit of a life insurance policy, because this benefit will pay to your beneficiary, should you pass away while insured. So, the more coverage you buy, the higher the life insurance costs will be.

For example, if you were to get a policy with a $500,000 death benefit, it’ll most likely cost more than the same type of policy with a $250,000 benefit.

How Old Are You?

Age is another common factor in determining how much your life insurance policy will cost. In fact, the older you are, the more expensive life insurance will be for you, because insurers see that a younger applicant will have a longer life expectancy.

For example, if you’re in your 20s, then insurers will expect you to live longer than the average 70-year-old applicant. This means that a 20-year-old is statistically less likely to pass away, thus have more time to pay insurance premiums.

In short, insurance companies will charge younger applicants less per year, whereas they’ll charge older applicants more per year.

What Is Your Health Condition?

When applying for life insurance coverage, insurance companies will review your health through a process called underwriting. Underwriting is when they might review your medical records, collect your blood and urine for lab testing, or ask you to take part in a medical exam with a participating nurse or doctor.  Find out how your health affects life insurance rates.

Then, there is one of three possible outcomes:

  • If you’re healthy with good habits, then you’ll pay less for insurance coverage.
  • If underwriting sees that you have certain health conditions, you’ll pay more for coverage.
  • If underwriting shows that you have a serious, life threatening condition (i.e. cancer), your application will get denied.What Is Your Family History?

“Family history matters, when it comes to applying for life insurance,” says Alice Hope, a journalist at Brit student and Australia 2 write. “As part of the application, the insurance company will ask about the medical history of your immediate family (e.g. your parents and siblings). If your immediate family has had a history of health problems, this could increase life insurance costs, as the insurer may worry you could develop those same issues.”

What Is Your Occupation and Lifestyle?

Finally, life insurance companies will want to know about your job and your lifestyle (i.e. hobbies).

For example, if your occupation involves you working in a dangerous field, you might have to pay a higher premium to make up for the extra risk.

Another example is that if you normally take part in any dangerous hobbies (i.e. skydiving or race car driving), this may also increase your costs.

Also, the insurance company could check your driving and criminal records, which can lead to a higher cost or denial of coverage, if those records are found to be serious.


After reading through these 6 common factors, if you’re still not sure how to go about buying life insurance, contact us. We can help you find a policy with the lowest life insurance costs.

The insurance companies will present their final quote a the end of the underwriting period. Then, you can decide whether to accept the policy or not. Still, understanding these factors beforehand can give you a better idea of what to expect, before getting started with the process. Before you purchase a policy, also take a look at Getting Life Insurance?  Avoid these 4 common mistakes.

Vanessa Kearney writes and edits at Academicbrits.com and Thesis writing service. She is also a contributing writer for Originwritings.com. As a professional writer, she’s passionate about writing on various topics.

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