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The Variables That Influence the Cost of a Life Insurance Policy

Life insurance can help your loved ones and financial dependents in case of your death. It helps reduce the financial strain on your family if you have debts, mortgages, or other financial obligations. It can also help them cover the costs of funeral arrangements.

Finding a reliable life insurance company and policy can be difficult due to the vast number of available options and premiums. But before you determine which insurance policy is right for you, it’s important to understand the factors that affect life insurance costs. Read on to learn more!


The primary factor in determining the cost of life insurance is your age. As a person gets older, the risk of dying increases. Your premiums will increase as well. This is simply because the older you are, the greater the likelihood of you dying within a certain period of time. People with pre-existing medical conditions such as diabetes or high blood pressure can be charged a higher premium than those in good health.

In some cases, people don’t qualify for life insurance because of their age and deteriorating health. However, you can get supplemental insurance to cover your health care costs if you have a serious health condition.

Health Condition

Generally speaking, insurance companies will charge more for applicants who have pre-existing conditions. This is because these types of conditions increase the risk of early death or health problems in the future. Before purchasing life insurance, you should always check with your doctor to see if your health qualifies for the policy you are considering.

Some insurers will offer coverage to applicants with certain health conditions if they meet certain requirements. For example, some insurers will offer coverage for applicants with diabetes if they keep all their appointments with their doctors and follow a strict treatment plan. In this case, the premiums may be higher compared to someone with no health issues.

Medical History 

If your medical history is complex, the insurance company may charge you a higher premium. This includes people who suffer from chronic diseases like heart disease, obesity, or cancer. They may also charge you a higher premium if you smoke cigarettes or have a lifestyle that puts you at risk for health-related problems. It is important to be honest when you apply for life insurance.

Your Lifestyle 

The type of life insurance you purchase will affect your insurance premiums. If you have a hazardous occupation or travel frequently, you may need to pay a higher premium for your policy. Moreover, your driving records and several other factors such as your job and marital status can impact the cost of your life insurance policy.

Coverage Type 

Depending on the coverage type you select, your insurance costs will vary. Life insurance policies offer different types of coverage that can be designed to protect your family in the event of your death. The most basic type of coverage is known as term life. Term life policies cover you for a specific number of years. Other types of policies include whole life and universal life. Whole-life policies provide permanent protection for you and your family. Universal life policies are also permanent, but they allow you to adjust the coverage amount as needed.

The length and coverage amount of your policy will determine how much you pay for it. Generally, shorter-term policies will have lower premiums than long-term policies.

Habits & Activities 

Certain habits or activities can have an impact on the price of your policy. Smoking or using drugs increases the risk of certain types of illnesses and can increase your premiums. Insurers may also charge a higher premium for people who have high-risk hobbies such as skydiving or rock climbing.

Reliable Life Insurance Company

If you’re in Houston, Texas, looking for a reliable life insurance company, you’ve come to the right place! At Franklin Life and Annuity, you can find a life insurance policy that is suitable for you.

Contact us right away to get started!

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