Age and Health: Younger and healthier individuals typically pay lower premiums because they’re considered lower risk. Age and health directly affect life expectancy, which insurers use to calculate risk.

Coverage Amount: The higher the coverage amount (death benefit), the higher the premiums. Insurers access the risk associated with paying out a larger sum.

Type of Policy: Term life insurance is generally cheaper than permanent life insurance (such as whole or universal life). Permanent policies offer lifelong coverage and often include a cash value component, which increases premiums.

Term Length: For term life insurance, longer terms typically have higher premiums because the insurer covers the risk of the insured’s death for a more extended period.

Occupation and Hobbies: Riskier occupations or hobbies (e.g. skydiving, deep-sea diving) can lead to higher premiums as they increase the likelihood of death or injury.

Smoking and Substance Use: Smokers typically pay higher premiums due to the increased health risks associated with smoking. Substance use, including alcohol and drugs, can also impact premiums.

Family Medical History: Some insurers consider the medical history of your immediate family members when determining premiums, as certain health conditions may have a genetic component.

Gender: Historically, women have lower life insurance premiums than men because they tend to live longer on average.

Driving Record: Poor driving records, especially if it involves DUI or multiple accidents, may result in higher premiums due to the increased risk of premature death.

Location: Where you live can affect your life insurance premiums. Areas with higher crime rates or lower-quality healthcare may have higher premiums.

Underwriting Criteria: Each insurer has its own underwriting criteria and risk assessment process, so premiums can vary between companies even for the same individual.

Understanding these factors can help individuals make informed decisions when purchasing life insurance and potentially save money by finding the most suitable policy for their needs.