Term Life Insurance - the factors that affect your premium

While term life insurance (assurance in the UK) is generally inexpensive and a very effective way to ensure that your family is protected, there are many factors that can affect your actual premium, as follows:

1. Your overall health. Medical exams will often be carried out (at no cost to you) to draw a medical profile of you, and, to be blunt, the chances you will outlive the policy (a good thing for you and the insurer!)

2. Your age. This one is self explanatory, and it often affects men more than women because a woman at any given age is expected to live longer than a man.

3. Specific medical problems. One area that all term life insurance or assurance carriers test, for example, is your cholesterol level because heart disease due to uncontrolled cholesterol is the most common problem of men, especially those who die early.

4. Your basic build, height vs. weight. Another huge problem is obesity as it related to getting more serious medical problems and early death.

5. Family history. A family history of diabetes, heart disease, stroke, etc. can lead to a higher term life premium if the disease has proven to have a genetic effect (passed on from generation to generation).

6. Alcohol and drug use. These issues can affect your premium.

7. Smoking. An obvious one - some companies will not insure a smoker.

8. Your occupation. If you have an occupation that puts you at risk - scuba diving or piloting a plane for example, you may be faced with a higher term life premium

Some companies will give you a chance to reduce your premiums if your health, job, or substance use situation improves. This is something to ask about when shopping around for a good term life assurance policy.

Each and every life insurance company may have different factors they pay attention to. This may lead to your agent or broker choosing a policy that fits your unique profile the best.