Coverage amount and length
The greater the amount of coverage and the longer the duration of the policy, the higher the premiums will be. The longer a policy is in force, the more likely an event is to occur, resulting in greater risk for the life insurance company. The higher the coverage amount, the greater the potential financial burden on the life insurance company. Higher premiums are designed to compensate the life insurance for the additional risk they assume.
Age
Age is another factor that affects your premium. The older you are, the more likely your life insurance premium will be higher. This is due, in part, to a greater chance of a decline in health or likelihood of passing away.
Health
How healthy you are is one of the most important factors in calculating the premiums for your life insurance. The good news? You can play a role in your health by eating well and exercising regularly. The healthier you are, the cheaper your insurance will be. However, pre-existing health issues can drive up the price of life insurance significantly.
Health-related metrics typically evaluated by life insurance companies include things like body mass index, which can be an indicator of certain health conditions and/or a present a higher risk of developing conditions like diabetes, heart disease or cancer. Life insurance companies may also consider blood pressure, cholesterol, heart rate and weight, all of which can provide insight into potential health conditions and risks. Most insurance policies require a medical exam to collect these health metrics. This may include a blood test, urine sample and EKG. There are some no-exam policies available, but typically premiums are higher.
Gender
In most cases, men pay higher life insurance premiums, partly because studies indicate that women live longer than men. According to the Center for Disease Control, the average lifespan for men is 75.8 years versus 81.1 for women. Men’s shorter life expectancy is attributed to riskier behaviors and health habits, a greater resistance to seek medical attention for issues and biological factors.
Job
What you do for a living can also affect what you'll pay for life insurance. Jobs that involve high-risk situations, such as coal mining, tend to involve higher premiums over someone working in a physically safer, less risky position such as a bank.
Hobbies and habits
When determining how much life insurance costs, certain habits and activities will be taken into account. That includes participation in risky sports or other kinds of adventures. Using tobacco products, excessive alcohol use or a DUI violation are all lifestyle habits that will drive up life insurance premiums.
Ways to make life insurance more affordable
While some factors may be out of your control, such as your medical history, the good news is that there are a few proactive steps you can take to make life insurance more affordable.
Stop smoking
Smokers pay much higher life insurance rates. If you can stop smoking, you will not just improve your health, but you can avoid paying higher smoker rates, as well.
Improve your health
By focusing on eating healthy foods, exercising regularly and seeing a general practitioner, you can improve your overall health and potentially reduce your life insurance premiums.
Avoid dangerous or risky behaviors
Certain behaviors can put you at higher risk for death. Everything from driving under the influence to using recreational drugs or failing to wear a seatbelt can put you at greater risk and cause you to have higher life insurance premiums.
Choose the right policy type and amount for your needs
Our life circumstances change as we age. When your children are grown and out of the house, for example, you might not need as much life insurance as you once did, so decreasing your coverage on an existing policy might make a lot of sense. It's always a good idea to check in on your policy every so often, especially if you've had a major life event, such as the birth of a child or the loss of a spouse.
It’s a good idea to take some time to carefully consider how much life insurance you really need so that you don’t overpay in premiums. Generally speaking, the lower the death benefit and the lower the term, the lower the premiums will be.
Other options includes purchasing riders on your policy to allow flexibility at the end of the term of your policy or to cover specific risks that otherwise may not be included in the standard policy contract.
If you’re purchasing a permanent life insurance policy for you and your spouse, you may consider investing in a second-to-die policy. This type of policy only pays out a death benefit after both insured individuals have died, so it’s typically less expensive than two separate permanent policies. This makes survivorship policies a cost-effective choice for estate planning and providing heirs with a death benefit.
Shop around and compare quotes
Remember – while premiums for life insurance can vary, you won’t know what yours will be until you shop around for options or work with a life insurance agent who can offer you a quote based on your needs. Learn more about life insurance and the policies available to you.
Sources:
Insuranceopedia, Average Cost Of Life Insurance In 2025: Rates By Age And Term,” 2025. Opens in a new tab
Insuranceopedia, Average Cost Of Life Insurance In 2025: Rates By Age And Term,” 2025. Opens in a new tab
2025 Insurance Barometer Study, LIMRA. Opens in a new tab
Nerdwallet, “Average Life Insurance Rates for August 2025,” August 6, 2025. Opens in a new tab
CDC, “National Center for Health Statistics Life Expectancy,” 2023. Opens in a new tab
