Life insurance is a great way to protect loved ones. However, for people who are shopping for a policy, they may notice that premiums vary considerably. There are several factors which will affect life insurance premiums. To get an idea of what factors are involved, these are the primary ones.

Age

Date of birth is probably the most important factor when it comes to premium costs. An insurance policy taken out at the end of a person's life is going to be a much higher cost than someone who is relatively young taking out a policy. As a person ages, the chances of an insurer having to pay out increases so premiums also go up. This is why it's often a good idea to take out a policy at a younger age when possible.

Gender

Women tend to have longer lifespans then men so their premiums are often less then men's costs. For example, the average life expectancy for women is around 81 years while men are lower at around 76. The five year difference can make a significant different when it comes to total costs. This is why women often will find lower rates then men.

Health History

Some insurance companies may require a medical exam and access to health records before setting up a policy. Having a history of medical problems will generally increase the cost of the policy. Insurers know that chronic diseases such as heart disease and diabetes are going to increase a person's risk of mortality. Insurers also want to know current health conditions. Situations such as weight, cholesterol, and other metrics that could affect future health will all play a role in the cost.

Smoking

This is an area that's often surprising to people but smoking is considered to be an independent risk factor. The health risks associated with smoking include cancer and lung disease. Even if there is a history of smoking, costs may still be higher than a person who has never smoked in his or her life. Insurance companies will want to know about current and past smoking. However, if stopping smoking with a current policy, it may be possible to have a lower premium.

Occupation

The job that a person has may put them at a higher or lower risk of mortality. For example, high risk careers such as loggers, roofers, and pilots can expect to pay a higher amount for insurance. This is because their profession is considered riskier than others. When applying for life insurance, the company will ask about profession. Additionally, a premium may be higher if work exposes you to toxic chemicals or requires performing dangerous duties.

These are a few of the reasons why a premium for life insurance may cost more or less. However, each policy costs can also vary so it's worth getting a few quotes. Since there are also different types of life insurance, always read through the policy specifics. Knowing what's in a policy as well as what factors affect its cost can help each person to make an informed decision.