1) Age
As a general rule, the younger you are the lower your premium.
This is simply because the older you are, the shorter your life expectancy, meaning you pose a greater risk to the insurer as it’s more likely that a claim will be made.
The table below shows how the price you pay for your premium can vary based on your age.
Quotes are based on a non-smoker, who is in good health:
The best way to secure the cheapest price is to take out life insurance as a young adult. This enables you to lock in the cheapest possible premium.
2) BMI
Body Mass Index (BMI) is calculated using your height and weight to determine whether you're a healthy proportion.
Being overweight brings with it an increased risk of a number of health complications such as heart attack, type 2 diabetes and high blood pressure.
Many of these hypokinetic conditions bring with them potentially fatal implications and as a result, present a higher risk to the insurer.
Equally, if the applicants BMI is too low (usually below 16), your premiums will also be loaded.
Why not use our handy calculator to work out your current BMI?
3) Smoking
It’s no secret that smoking shortens your life expectancy, therefore, it's not surprising that smoking increases the cost of your life insurance premium.
This is due to the increased risk of contracting a serious disease such as lung or throat cancer. As a result, the insurer mitigates their risk by loading premiums for smokers.
It's not uncommon for a smoker's life insurance premiums to be twice that of a non-smoker for the same level of cover so, if you’re a smoker, it’s even more important to compare quotes to find the most favourable rate.
The table below shows the price difference between a smoker and a non-smoker.
Quotes are based on an applicant in good health for a level term life insurance policy with £100,000 of cover over a 20-year term:
Quitting smoking can help you to secure a more favourable premium, but you’ll need to have been free of nicotine for a certain period of time before insurers will offer you non-smoker rates (this is usually 12 months but can vary between providers).
Did you know? Insurers classify you as a smoker if you have used any nicotine or nicotine replacement products, including gum, patches and e-cigarettes.
4) Medical history
The presence of certain medical conditions, such as type 1 diabetes or MS, can significantly increase the cost of your premiums.
The increased risk of having a serious health condition poses a greater risk to the insurer as a claim can be more likely to occur.
How much your premiums are affected by a pre-existing medical condition will vary depending on the type of illness you have as well as the severity and frequency of your symptoms.
Equally, if you have previously had cancer, your monthly premiums will be increased.
It's also worth noting that the majority of insurers will not cover you unless you have been in remission for at least 5 years.
5) Mental health and suicide
As well as physical health, your mental wellbeing is also taken into account when applying for life insurance.
As with your physical health, the impact your mental health has on your day-to-day life, and the treatment you receive, could influence the cost of premiums.
Previous suicide attempts and self-harm may not prevent you from securing life insurance, but your application will be required to go through manual underwriting (this is where your policy is written by an underwriter, rather than going through an automated process).
However, some providers may decline your application.
In this process, certain aspects such as the length of time since the occurrence and the treatment received will be taken into account.
It's also likely information will be collected from your GP (however, this can’t happen without your consent).
6) Family medical history
The presence of certain hereditary illnesses, such as heart disease or certain cancers, is taken into account due to the increased risk of you contracting this condition.
As a result, your monthly life insurance premium is likely to be increased.
It's typically accepted that the medical history of your family only needs to be taken into consideration until they reach a certain age, usually 60 years.
This is due to the common understanding that certain diseases are statistically more common after this threshold.
In some instances, the hereditary disease is written into the policy as an exclusion.
This means that if you die from one of the diseases previously experienced by a family member, your policy won’t pay out.
7) Substance use
Alcohol consumption and the use of recreational drugs both bring with them significant health risks which can shorten your life expectancy.
Therefore, regular overconsumption of alcohol (over 14 units per week) can lead to increased life insurance premiums.
If you’re actively taking recreational drugs, it’s likely that you’ll be declined cover due to the increased risk you pose.
8) Occupation
Having an occupation that is considered by insurers to be high-risk can lead to your premiums being increased.
High-risk occupations include (but aren’t limited to):
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