Know 7 Factors that Affect Life Insurance Quotes

Buying a life insurance plan is important for every individual. But even then, only a small percentage of Indians are insured. Do you know why?

This is because there is a lack of awareness about the importance of life insurance. Moreover, people are not aware of the factors that affect life insurance quotes. Read on if you too are dealing with the same issue.

What is Life Insurance?

A life insurance plan can be understood as a legally binding contract between the policy owner and the insurance provider. Under this plan, the insurance provider pays a sum of money to the beneficiaries in case of the demise of the insured in exchange for premiums by the insured during their lifetime.

Importance of Life Insurance

Most people must have heard about life insurance. However, we tend to believe that nothing will happen to us. Life is uncertain, and anyone can experience unfortunate circumstances.

A mishap can leave your family devastated. Although nothing can replace you, providing a financial net for your family can at least protect them against financial issues in your absence.

Financial Safety Net 

You earn money, and your loved ones rely on your income. In case of your sudden demise, they may have to experience financial trauma along with emotional trauma.

Buying a life insurance plan can allow them to enjoy a particular standard of living. It works as a safety net and offers financial stability.  By getting a life insurance quote for yourself early in life, you can avoid paying a higher premium.

Customized Plans 

There is a wide range to choose from when it comes to life insurance plans Endowment plan, term plan, whole life insurance and group life insurance are a few types of life insurance plans. Essentially, you can purchase a policy that works best for you.

Builds Wealth 

Some life insurance plans also provide investment opportunities. The money paid as a premium gets invested in various market instruments. At the time of maturity, the policyholder receives a maturity benefit that can finance your golden years.

Saves Tax 

Under section 80C of income tax, individuals can avail tax benefits for the premium paid towards a life insurance plan.

When you buy life insurance, there are certain factors that will affect the life insurance premium amount. You can use a calculator online to get an accurate life insurance quote.

Now that you know the benefits of a life insurance plan, take a look at the factors affecting life insurance quotes.


The policyholder’s age is one of the most crucial factors that determine the life insurance quote. Young policyholders usually pay lower premiums. However, as you age, the chances of the insurer writing a check for your family increase. For this reason, premiums increase as you age.


It may be surprising, but gender is also a factor affecting life insurance quotes. Insurance providers use statistical models to determine how long someone will live. Most studies suggest that women tend to live longer than men. Because they pay premiums for a longer period, women are likely to enjoy slightly lower premium rates.

Smoking Habits 

Undoubtedly, smoking puts you at a higher risk of several ailments. So, if you smoke, no matter how infrequently, it’s a red flag for insurance providers. In fact, smokers pay more than twice the premium compared to non-smokers.


The underwriting process usually includes a medical test that records weight, height, cholesterol, blood pressure and other key metrics. From the perspective of insurance companies, it is essential to know about the insured’s health conditions. Any serious illness, such as heart disease, is likely to increase the life insurance quote.

Family History 

There’s not much that you can do about your genes. However, a family history of cancer, stroke or other serious illnesses can increase your premium amount.

Some insurance carriers may put more emphasis on your family’s health than others, but it can impact your life insurance quote.


The premium rate can also increase if your profession carries a high risk. You will be asked about your occupation, and the premium rate will be higher if your occupation involves coming in contact with toxic chemicals or requires performing dangerous duties.


Do you love paragliding? Or do you have a passion for car racing? If yes, you’ll have to shell out more for insurance premiums. Every time you engage in high-risk activities, there are chances of unfortunate events. As a result, insurance companies may charge you more.

Final Thoughts 

Taking a life insurance plan is essential. It not only secures the financial future of your loved ones but also gives you a chance to grow your wealth.

We hope that this guide cleared up your doubts about life insurance quotes. Consider different life insurance plans and talk to an insurance agent to determine your life insurance quote.