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What factors affect my life insurance premiums?

If you’re taking out Over 50s life insurance, the only factor that will affect your monthly payments (premiums) is age. However, for most term life insurance policies which are taken out over an agreed period or term, your premiums are based on a number of factors.

When you apply, your insurance company will assess certain criteria and details about you and your lifestyle in order to determine how much your premiums will be, and whether or not they’ll accept your application, based on what you tell them.

This is one of the few insurance products that has the price tailored specifically to you, and your provider will take into consideration some or all of the following:


The younger you are, the better health you’re likely to be in, so taking out life insurance early on can mean lower premiums. Put simply, the younger you are, the cheaper it is.

Health and weight

If you are classed as overweight or obese based on a height-to-weight ratio measurement, you may pay more for your policy. This is because your insurance company could assume if you are overweight you are more likely to suffer from weight-related health problems.

Medical history

Most life insurance policies are medically underwritten, and as well as your own, you’ll also have to provide information about your immediate relatives’ medical history. Your insurance company will however pay particular attention to your medical history.


Some trades and professions carry a greater risk because of their day-to-day duties, so you might find this impacts on the cost of your insurance. A fireman, for example, is likely to pay higher premiums than an office worker.


You’ll be asked to provide details of any habits or hobbies that play a regular role in your life. Smoking, drinking and drug-taking are likely to increase your insurance rates, because of the toll they can take on your health. Certain high risk pastimes could also affect your premiums, including parachuting, mountaineering, aviation and motor sports.

Policy amount and term

Your life insurance premiums will also depend on the term of the policy and the sum insured. The higher the amount you need to be covered for and the longer you need the cover to last, the more you’ll pay.

Your life insurance premium will be calculated on a case-by-case basis, and quotes will vary depending on the information you provide. The bigger a ‘risk’ you are deemed to be, the higher your premiums are likely to be. However, it’s vital you’re honest and accurate in your application. If you neglect to include key information and pass away within the term of your policy, your provider is unlikely to pay out. Honesty is always the best policy when it comes to life insurance, so you can carry on living to the full without worrying about the future.