Most people take life insurance a few years after they start working. This is because they want to ensure that their families get some financial security in case of their death. The amount that you pay to the insurance provider over regular periods of time or in a lump sum is called the premium. It is against this premium that an insurance provider will provide financial coverage.

A person’s life insurance premium is determined by the insurance companies based on a number of factors. A few of these factors are:

  • Current age

The younger you are, the lower your premiums will be. Life insurance premiums increase with age, as does the insurer's level of risk. This is why people take life insurance early in their working life.

  • Gender

The battle of the sexes extends to the life insurance premium battlefield, too. Since women, on average live longer than men, their insurance premiums too, are lower by a tiny margin.

  • Smoking preference

If you smoke cigarettes, chew tobacco or snuff other stuff, you are more likely to pay high premiums. Insurers calculate premiums based on the risk they undertake while insuring your health, which tobacco destroys. One more reason to kick the cigarette butt.

  • Coverage tenure

The longer an insurance company covers you, the great its risk. Thus, premiums on short-term policies are more expensive, but long-term life insurance plans have more payments.