Life insurance rates are calculated based on a number of factors; the biggest impact being health related.  Although there is a ‘formula’ for determining rates that insurance companies use, these are the most common factors:

Age.  The younger you are the less likely you are to die suddenly in comparison to an older individual.  This is why it is recommended you buy life insurance when you’re young.

Your Current and Past Health.  Your medical records will help determine if you’re a risk due to chronic disease or other health problems.  Your blood pressure, heart rate, etc.; will be taken at your exam to help assess your current health.

Your Occupation.  Do you have a job that is considered dangerous?  People working in some professions are rated higher risk than others.  Some examples are pilots, construction workers, even stylists (chemical exposure, risk of slipping on a wet surface).

Drinking and Smoking.  Because these both take a toll on your health over time, insurance companies ask about drinking and smoking.  If you do one or both, it will be reflected in higher rates.

Family Health History.  Some diseases are genetic, and if your family has a history of them you will pay more.

Your weight.  Some diseases are linked to being overweight and certain medical conditions are caused by weight issues.  Weight has a direct impact on insurability and costs.

Gender.  Men will have higher insurance costs automatically because of life span in comparison to women.  Women tend to live longer.

This update has been provided by Fresh Finance.