How Much Is Life Insurance? Here Are 10 Factors That Impact Costs

Factors that impact Life Insurance cost

Just how much is life insurance? Here are 10 factors that impact how much you'll pay for a life insurance policy.

Recent research suggests that only 37 million Canadians have life insurance.

Are you among that statistic?

If you're wondering about how much is life insurance, you're not alone. Prices can fluctuate depending on several factors. We're here to explain exactly what those factors are so you can get on with your important decision.

Read on to learn the 10 important factors that impact your life insurance premiums:

1. Your Age

If you're wondering how much is life insurance, take your birthday into consideration. It's often the number one factor impacting insurance premium costs.

The younger you are when buying life insurance, the cheaper your rates will be. On a scientific level, this makes sense. The younger you are, the more life you typically have left to live.

Although it's recommended to buy life insurance as soon as you can, don't let age sway you. It's never too late to properly plan for your family's financial well-being.

2. Your Gender

While no insurance company can guarantee how long someone will live, gender statistics do play a role in determining overall costs.

Women around the world live about 5-10 years longer than their male counterparts. Men have a greater risk of dying from cardiovascular problems like heart attacks and strokes. They are also more likely to work in hazardous industries associated with accidental injuries and death.

This means that women enjoy slightly lower rates when it comes to life insurance policies.

3. Your Weight

Are your pants feeling too tight? Stomach hanging over the waistband? Need to shed some weight?

Whether you're motivated by cosmetic or health reasons, we've got one more reason why maintaining a healthy weight is important.

Being overweight or obese poses numerous health threats. If you're wondering how much life insurance is, step on the scale. If the number is higher than the healthy range, you will likely end up paying more.

If the number is much higher than the healthy range, your rates could skyrocket. Being obese is viewed as a medical liability.

Unlike many factors impacting life insurance, your weight is something you can generally control. It's just one more incentive to focus on eating healthy and getting back in the gym.

4. Your Health

Most life insurance companies require physical exams and health screenings to determine your overall health.

If you have conditions like high blood pressure, diabetes, or a history of chronic illness, you will need to pay more for life insurance.

Again, this is another reason to take care of your health. Make sure you're eating a balanced diet, exercising regularly, and getting enough sleep. It can pay dividends when it comes to your life insurance costs.

5. Family Medical History

There's not much you can do about your DNA or your ancestors.

With that said, a family history of chronic illness, cardiac issues, stroke, or cancer can increase your risk of developing these conditions. It may not be fair, but that's just the reality of how life insurance works.

Because your parents and siblings could be carriers of these conditions, you might be considered a candidate for premature death.

Each policy differs with how they emphasize family medical history. If you're questioning how much is life insurance, know that this could certainly impact prices.

6. Your Job

It's how you make money, but your job can also affect how much money your life insurance ends up costing you.

If you work in a high-risk field that requires physically demanding or dangerous activities, you will pay higher rates. Some of these jobs include farming, roofing, mining, commercial fishing, logging, construction labor, and electrical power line installers.

However, because these jobs are inherently dangerous, it's even more important for these employees to look into life insurance plans. It provides peace of mind for you and your loved ones.

7. Smoking

How much is life insurance if you occasionally light up? It typically is a lot more compared to the rates of a non-smoker.

If you needed another reason to quit cigarettes, here's one.

Insurance companies know that smoking inherently places you at a higher risk for health problems. If they know you smoke, you could pay more than twice the rates of your non-smoking counterparts.

8. Your Lifestyle

If you love to hang-glide, scuba dive, or motorcycle race, you already know how to have a good time.

Unfortunately, these thrilling activities can deem you high risk for life insurance companies. That's because you have significantly greater chances of dying from sports-related accidents.

It doesn't mean you have to quit your favorite hobbies. But this is something you must be aware of before considering policies.

9. Driving Record

Most life insurance companies want to see how safe and cautious you are while out on the road.

This is because the chances of dying in an automobile-related accident remain overwhelmingly high, especially for otherwise healthy adults. It's also because reckless behavior is associated with medical injury and death.

If you have a poor driving record or history for speeding, your life insurance premium prices may reflect that.

10. Type of Policy

The type, length, and specifications of your policy will impact the rates you pay. It's straightforward math: the longer the term and the larger the amount, the more you'll end up paying.

In addition, certain types of insurance, such as whole life or permanent life insurance, tend to cost more than term life insurance policies.

Each insurance provider differs in how they break down their policy types, so be sure to ask.

How Much Is Life Insurance? Find Out Now

While nobody likes planning for their death, having a financial strategy is important for the well-being of your loved ones.

If you live in Canada and you're ready to get the lowest rates available, you can request a free quote here.

Do you have questions or comments about how life insurance or other insurance premiums work? Contact us here for more information.