The main factor influencing the life insurance premiums of a policyholder is their age. Younger persons are generally considered healthy and unlikely to contract illnesses or pass away suddenly; hence younger people attract lower insurance premiums.
Gender is another factor that determines the premium amount as proven scientific and statistical evidence points to women likely to live an average of 5 years more than men. Consequently, since women are perceived to avail of policies for a longer tenure, they can avail of lower premiums.
Medical records play a crucial factor in deciding the premium as well, since life insurance policies typically come with an underwriting process that includes a thorough medical exam of the policyholder. Any red flags concerning physical health and potential illnesses can have an impact on the amount of premium to be paid.
Family history is important as certain hereditary diseases could be passed on to the policyholder. The family's medical history plays a part in revealing these patterns and can influence the amount of premium.
Smoking and drinking, which are considered harmful to health and can impact your longevity, also influence the amount of premium to be paid. Professions and lifestyles can also impact the life insurance premium. Persons working in professions considered dangerous like mining, oil and gas and fisheries, and indulging in risk taking activities like mountaineering can attract higher premiums.