Life insurance rates vary widely from person to person, even for the same type of policy and coverage amount. That’s because insurers evaluate risk based on your health, lifestyle, finances, and more. Understanding what goes into your life insurance rate can help you choose the right policy, avoid overpaying, and take steps to qualify for lower premiums.
Below are the main factors that influence what you pay for life insurance.
Your Age
Age is one of the strongest predictors of your life insurance rate.
• Younger applicants pay significantly less
• Rates increase with each passing year
• Buying coverage early locks in a lower premium
Most people save the most by purchasing a policy in their 20s or 30s.
Your Gender
Statistically, women live longer than men — and life insurance pricing reflects that.
• Men generally pay higher premiums
• Women tend to receive lower rates for the same coverage
• Some policies offer unisex pricing (rare)
Gender is an unavoidable factor in rate calculations.
Your Health History
Life insurers evaluate your current health, past conditions, and risk factors.
Common health considerations include:
• Blood pressure and cholesterol levels
• Heart disease
• Diabetes
• Cancer history
• Respiratory conditions
• BMI and weight
• Mental health history
• Family medical history (heart disease, cancer, stroke)
Many policies require a medical exam, although no-exam options exist at a higher cost.
Tobacco and Nicotine Use
Smoking, vaping, and other nicotine products significantly raise life insurance rates.
• Smokers may pay 2–5× more than non-smokers
• Recent nicotine users may still be considered “smokers” for pricing
• Some insurers require 12–24 months nicotine-free to qualify for non-smoker rates
Avoiding nicotine is one of the biggest ways to lower your premium.
Your Lifestyle and Hobbies
Risky activities increase the likelihood of serious injury or death, which raises premiums.
Insurers consider:
• Skydiving, scuba diving, rock climbing
• Aviation activities (piloting small aircraft)
• Dangerous occupations
• Adventure sports
• History of reckless behavior (e.g., DUIs)
Safer lifestyles = lower premiums.
Your Occupation
Some jobs carry more risk than others.
• Construction workers
• Roofers
• First responders
• Truck drivers
• Miners
• Heavy machinery operators
Low-risk jobs (office, teaching, tech, etc.) cost less to insure.
Your Policy Type
Different life insurance products come with different price structures.
• Term life — most affordable, fixed for the term
• Whole life — higher premiums due to lifetime coverage + cash value
• Universal life — flexible, but often more expensive
• No-exam policies — cost more due to higher insurer risk
Choosing the right type ensures you’re not overpaying for features you don’t need.
Your Coverage Amount
The more coverage you purchase, the more you’ll pay.
• $100k policies cost less but may not provide enough coverage
• $500k–$1M are common for families or mortgage coverage
• Premiums scale up with higher death benefits
Aim for a coverage amount that matches your financial needs.
Policy Term Length
For term life policies, the term affects the cost.
• 10-year term — lowest cost
• 20- to 30-year term — higher cost but long-term stability
• Longer terms lock in a rate but carry more risk for the insurer
Short-term policies cost less but may not provide enough protection for families.
Your Driving Record
Your driving habits reflect risk.
• DUIs greatly increase rates
• Multiple accidents or major violations raise premiums
• Clean records result in lower costs
Driving risk is considered because it correlates with mortality risk.
Alcohol and Drug Use
Insurers review current and past substance use.
• Heavy alcohol use raises rates
• History of substance abuse may require higher premiums or affect eligibility
• Regular testing or medical records may be required
Insurers look for stability and long-term sobriety.
Your Financial Health
Certain financial factors influence pricing.
• Bankruptcy history
• Large outstanding debt
• Missed loan payments
• Income level (to ensure policy suitability)
Financial health is also used to determine how much coverage is appropriate.
Family Medical History
Genetic risk plays a role in your rate.
• Heart disease
• Cancer
• Stroke
• Diabetes
A strong family history of major health issues can increase your premium even if you’re healthy.
Additional Riders and Add-Ons
Optional features add to your total premium.
Popular riders include:
• Accidental death benefit
• Waiver of premium
• Child coverage rider
• Return-of-premium rider
• Long-term care or chronic illness riders
Choose riders based on need — they can increase your cost significantly.
Height and Weight
Insurers use BMI as one measure of health.
• Overweight or underweight applicants may pay more
• Healthy BMI ranges often receive the best rates
• Some insurers use more flexible height/weight charts
Small lifestyle changes can make a big difference in long-term premium cost.
How to Lower Your Life Insurance Rates
While you can’t control every factor, there are many ways to reduce your cost:
• Apply earlier in life
• Maintain a healthy lifestyle
• Quit smoking or nicotine products
• Improve your driving record
• Choose term life instead of whole life
• Keep your BMI in a healthy range
• Reduce risky hobbies
• Limit alcohol consumption
• Compare quotes from multiple insurers
• Choose only the riders you need
Even minor health improvements can lower your rate within a few months.