Factors That Affect Life Insurance Quotes

The price for a life insurance policy can vary dramatically, often running from $132 to $9,696 per year. There are many reasons for those price differences, as a lot of factors affect life insurance quotes.

By understanding what factors impact life insurance prices, it’s easier to approach the quote process with the right mindset. Usually, the variances are related to the health and death risks that are present within specific groups and are less of an issue in others. Here’s a look at the points that can alter life insurance quotes.

Because life insurance is paid out upon death, those who have shorter remaining lifespans are viewed as riskier, leading to higher costs. While it’s not the only point an insurance provider will consider, a person’s current age is a major factor when estimating their remaining lifespan. As a result, the most significant factor that influences a life insurance quote is the applicant’s age.

Another influential factor that affects life insurance quotes is the applicant’s gender. The average life expectancy for a woman is about six years longer than it is for a man. As a result, women may see lower rates listed on their life insurance quotes when compared to men of the same age with similar risk profiles, as their remaining lifespan is often assumed to be longer.

Smoking Status
Overall, smokers pay an average of 215% more for their coverage than non-smokers. The main reason is that smoking is connected to a variety of health conditions, including many that shorten a person’s lifespan.

However, exactly how much of a difference smoking makes does depend on a few factors. For example, the frequency or quantity of cigarettes smoked may play a role in pricing. The type of smoking a person does — such as whether they smoke cigarettes or cigars or if they use vapes instead — can also play a role.

Even former smokers may see higher rates depending on how long ago they quit. Finally, other types of tobacco use — such as using dip — might also have higher quoted prices since they also come with health risks.

Specific lifestyle choices are associated with a higher risk of premature death. One prime example is participating in a high-risk job. For example, based on a report by USA Today, loggers, roofers, commercial pilots, agricultural equipment operators, and many other professionals are at greater risk of injury and accidental death when compared to others. As a result, insurers will look at a person’s occupation when determining how much to charge.

Additionally, participating in high-risk hobbies can lead to higher life insurance quotes. Car racing, rock climbing, and similar activities are prime examples, though other hobbies can also lead to increased premiums.

Medical History
Life insurance providers examine an applicant’s medical history to identify risks that could shorten the person’s lifespan. Along with personal health conditions, they’ll check the applicant’s family history. The reason for the latter is that some medical conditions are more likely to develop if a person has a family member with the illness. As a result, a healthy person could see higher rates if they have a family history of conditions like heart failure, cancer, stroke, and other illnesses.
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