Factors That Influence Life and Health Insurance Premiums

Whenever you’re buying any kind of insurance policy, there are going to be a large number of factors that play a huge part in your insurance premiums. Two of the most confusing policies that you can ever buy are life insurance and health insurance, and both consider similar factors when determining your rate. Fortunately, there are some factors that you have control over, but there are some factors that the insurance company will always consider and that you can’t influence at all, such as your family’s medical history. Of course, being armed with the information you need will allow you to make the best, informed decision possible. Here are a few things that both life and health insurance companies consider when determining your insurance premiums:


This is a pretty known factor, as almost everyone know that the younger you are when you buy life and health insurance, the less you’re going to pay due to the possible risks that the insurance company is taking on. Obviously, an 18 year old is going to receive a lesser rate than a 60 year old, even if they have the same similar health histories. Insurance companies basically use a special algorithm that factors in age, so this is why rates are calculated this way regardless of how similar the two individuals may be. Obviously, an insurance company believes that they’re less likely to be taking on a risk, so they don’t feel the need to collect as much premium on the person because the odds of having to pay out are slimmer.

Health History and Family Health History

This is one of the biggest, if not the biggest, factors in determining a premium for someone. Some insurance companies will even have an insurance applicant take a blood test to prove that they don’t have any pre-existing conditions so they can be aware of all risks that you possibly present. Unfortunately, this is now a very common practice as so many fraudulent activities on life insurance policies have taken place. When this practice is done, a licensed professional will typically visit your home and collect a blood or urine sample, and also complete a standard questionnaire regarding your lifestyle, health, your family’s health and history, and other factors that could possibly affect your health or that put you at a high risk for death.

The most common health problems that affect life insurance and health insurance rates are conditions such as a history of heart disease in the family, high blood pressure, diabetes, cancer, any other cardiovascular diseases, and also any other terminal or chronic conditions that either you or someone in your immediate family has dealt with.

Lifestyle Choices, Career, and Hobbies

Even though an insurance company is there to pay benefits in the event of death or an illness, no insurance company wants to insure someone who is basically an accident or death waiting to happen. Not only will an insurance company ask for a larger premium for individuals that present the greatest risks, they can also reject the policies, or you may have to search for a company willing to provide coverage if you’re a high risk for death, accidents, and injury. Therefore, the way you live your life can heavily affect your premiums as well, and your career choice can also play a part. For example, a secretary at a law office may have the same health history as a racecar driver, but the secretary would more than likely have a lower rate on their life and health insurance since the secretary isn’t putting their life at risk every time they go to work, whereas the racecar driver has a statistically and probable chance of being injured or dying while they’re driving a racecar. Even your personal hobbies are taken into consideration, such as if you enjoy bungee jumping or parachuting, or if you’re a deep sea scuba diver that swims with sharks. People that have careers that are high risk typically have to find special insurance policies for coverage and also pay a very high premium.

Lifestyle choices are also a factor for life and health insurance, such as whether or not you smoke cigarettes or if you have a history of alcoholism or use recreational drugs. Insurance companies ask these questions and want to know if you’re doing something that will negatively affect your health or that could be a large contributing factor to your death. Insurance companies regularly test for nicotine, drugs, alcohol, and want to find out what your habits are as far as eating, drinking, and other recreational activities.

If you fear that these factors will work against you when it comes to buying life or health insurance, there are insurance policies called Guaranteed Issue Life Insurance, and these policies work by taking an average statistic or risk factor and will then insure anyone without having to provide any blood or urine samples. Guaranteed life insurance policies are capped at a certain amount, and generally the highest amount of life insurance you can buy is around $150,000. You will still have to go through a health questionnaire.

If you are young, in great health, your family doesn’t have any major health issues in their history, and if you don’t participate in any high-risk activities like bungee jumping, then buying a standard life or health policy is probably going to be the better choice for you, and you’ll also be able to get an affordable premium and obtain as much insurance as you’d like.

No matter what insurance you’re seeking, you shouldn’t provide false information under any circumstances, because if you ended up needing to use your policy and any information was found that differed from what you provided, your policy could be voided completely, revoke all payments previously made, and also refuse to pay any further benefits.