The factors that determine the cost of premiums include:
Age: Insurance companies usually charge higher premiums for older people than younger people.
Health: Applicants who are in good health usually get lower premiums than those with health issues.
Lifestyle: Certain lifestyle factors, such as smoking or engaging in high-risk activities, can result in higher premiums.
Occupation: People with high-risk occupations may have to pay higher premiums.
Amount of coverage: The premium usually increases with an increase in coverage amount.
Type of policy: Different policies (such as term life or whole life) have varying premium structures.