Death benefit. How much will your beneficiaries receive when you pass away? The larger your death benefit, the higher your premiums will be.
Type of life insurance. Term and permanent are two broad categories of life insurance. Term insurance is for a specific period, while permanent covers you for your whole life. Term insurance is generally the cheaper option.
Length of term insurance. When you buy term insurance, you’ll pay the same premiums for a set period of time. After that, they adjust each year according to a preset schedule. The shorter the term, the lower the premiums.
Gender. Statistically speaking, women live longer, so they have lower premiums.
Age at issue. Your age when the policy is issued impacts the cost of life insurance. The younger you are, the lower your premiums will be.
Medical exams. Insurance companies may charge more based on your medical history, blood tests and other medical factors.
Riders. Some life insurance policies allow investors to purchase additional benefits and features. Each of these options increases the amount that you’ll pay.
Life insurance company. Premiums vary from one insurance company to the next based on their underwriting criteria and target customer.
Monthly vs annual premiums. Insurance companies charge an extra fee for the convenience of making payments monthly instead of annually.