What Factors Determine Your Life Insurance Premium Rates

When people start shopping for life insurance, one of the first questions they ask is:
“How do they determine what I’ll pay each month?”

At DeFazio Insurance Brokerage, Inc., our goal is to make life insurance simple and transparent. Understanding what affects your premium helps you make confident, informed choices — and even discover ways to save money on your policy.

🩺 1. Your Age and Health

Age is the #1 factor in determining life insurance rates. The younger and healthier you are, the lower your premium will be.

When underwriting your application, insurance companies consider:

Medical history

Height and weight

Blood pressure, cholesterol, and lab results

Lifestyle factors such as smoking or alcohol use

The healthier your profile, the more favorable your rate class — and the less you’ll pay for the same coverage amount.

🚬 2. Lifestyle and Habits

Certain activities and habits can influence your risk level. Smoking, for instance, can double or even triple your premium.

Other factors that can increase your rate include:

High-risk hobbies (skydiving, scuba diving, rock climbing)

Dangerous occupations (construction, firefighting, aviation)

Frequent international travel to high-risk regions

Being upfront about your lifestyle ensures your coverage remains valid when your family needs it most.

👨‍👩‍👧 3. Type and Term of Coverage

The type of life insurance you choose has a major impact on your cost:

Term Life Insurance (10–30 years): Affordable protection for a set period.

Permanent Life Insurance (Whole Life, Universal Life, or Indexed UL): Lifetime coverage with potential cash value growth.

A longer term or higher death benefit increases your premium, but it also extends your protection — which can be a smart investment for long-term financial planning.

💵 4. Coverage Amount (Death Benefit)

Simply put, your premium is based on how much coverage you want.
A $1,000,000 policy will cost more than a $250,000 policy, but it also ensures your family can maintain their lifestyle, pay off debts, and cover future expenses.

🧬 5. Family Medical History

Even if you’re in great health, insurers often look at your family’s medical background. A history of heart disease, cancer, or diabetes can influence rates — though maintaining a healthy lifestyle may offset those risks over time.

🧠 6. Gender and Occupation

Women typically enjoy lower premiums than men because they statistically live longer. Similarly, people with lower-risk jobs (office or professional roles) usually pay less than those in hazardous fields.

🌟 7. Policy Riders and Added Benefits

Adding riders can slightly raise your premium but provide valuable flexibility.
Common riders include:

Accelerated Death Benefit Rider – access funds early in case of serious illness

Waiver of Premium Rider – keeps coverage if you become disabled

Children’s Term Rider – covers your children under one policy

These options can offer peace of mind when life takes unexpected turns.

🏡 The DeFazio Difference

At DeFazio Insurance Brokerage, Inc., we’re independent meaning we’re not tied to any one company. We shop and compare policies from top-rated carriers like Mutual of Omaha, Foresters Financial, Americo, and Royal Neighbors of America to find the perfect balance of protection and price.

Our mission is simple: Protecting Families. Building Futures. Simplifying Life Insurance.

📞 Ready to find your best rate?
Let’s explore your options today.

Andrew DeFazio
DeFazio Insurance Brokerage, Inc.
📧 andrew@defaziolife.com

📞 (916) 715-3375
🌐 www.defaziolife.com