If you’re in the market for life insurance, you want the best deal you can find. To secure the most coverage for the lowest price possible, it helps to understand how insurers calculate costs. Rates can vary because they’re based on each policyholder’s specific level of risk. Below are some of the most common factors insurance companies take into account when determining policy prices. 

What Influences Life Insurance Premiums?

1. Age 

Age is one of the most significant considerations for life insurance underwriters. It affects both policy pricing and how much coverage you’re allowed to purchase. Generally, younger policyholders enjoy the lowest rates because they present the least amount of risk to insurers. Over time, costs will steadily rise along with age as you become more likely to develop health complications.

2. Occupation

Your occupation can also be considered a risk to insurance companies. If you work in an inherently dangerous profession—law enforcement, the military, construction, or coal mining—you are exposed to more safety hazards than someone who works a desk job. As such, your premium price will reflect this risk. 

3. Hobbies 

Insurers want to know what you like to do in your spare time. If you tend to pursue adventurous activities—cliff jumping, rock climbing, racing cars, or scuba diving—you can expect insurance rates to rise. Insurers also take into account how often you participate in these activities. 

4. Health History 

Your health history—both physical and mental—have the biggest effect on your life insurance premiums. The healthier you are, the better your rate will be. Insurers analyze factors such as family health history, weight, blood pressure, smoking and drinking habits, and chronic illnesses. If there is any indication you’re not in optimal health, providers may view this as a sign of future complications, resulting in higher coverage costs.

Many factors play a role in how much you pay for life insurance. To ensure you’re getting both adequate and affordable coverage, contact Nicole Gumm Groseclose Insurance Solutions in Alleghany County, VA. For over 15 years, Nicole has worked with various carriers to optimize insurance coverage for families in Virginia and West Virginia. Her meticulous financial planning and comprehensive coverage options ensure reliability and stability in your insurance plan. Call (540) 968-1569 to schedule a consultation or visit her website to learn more about her services.