Key Factors That Directly Impact The Premium Of Your Term Insurance

It is a blessing to have a supportive, caring family that is there for you through good times and bad. In exchange, we wish to provide for all our family members’ needs and make plans for their future. Here, term insurance plans are the ideal solution for our requirements.

Although these procedures for purchasing a term plan appear adequate, they need to include a critical step – understanding the reasons behind term insurance rate increases.

Factors that influence the rise of term insurance premiums –

  • Age Health Status
  • Gender
  • Smoking Customs
  • Occupation
  • Affective Patterns
  • Determined Sum Assured
  • Tenure of Premium Payment

Let’s now explore each of these elements and their effects in more detail below.

  • Age

Age is a critical factor affecting how your term insurance premiums are calculated. In other words, the cost of term insurance rises as the policyholder ages.

  • State of health

You and the insurer you choose to get term insurance from are concerned about your health. This is the rationale behind why the majority of term insurance policies demand that you go through a rigorous medical evaluation.

The term insurance premium that must be paid for a particular life cover may then be calculated using this medical information. Certain conditions may result in you paying a higher premium for a term policy than someone healthy.

  • Sexes

In order to estimate your premium, using an online term insurance premium calculator can help you understand the difference in premiums costs, depending on your gender.

  • Smoking habits
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According to research, smokers have a higher risk of developing heart disease and lung cancer than non-smokers. The trouble is 25 times higher for men to acquire lung cancer specifically.

  • Profession

Despite being one of the less essential elements, it might affect the rise in term insurance premium. The same factor applies here as for smoking – some occupations, like that of a pilot or construction worker, constantly require to perform actions that increase the risk to their lives, thus increasing the likelihood that their lives may be lost.

  • Personal habits

Your manner of life indirectly affects the rise in term insurance premiums. For instance, the likelihood of having liver issues in the future is relatively higher if you routinely drink alcohol.

The insurer can determine the associated risk factor by being aware of the policy buyer’s habits. On the other hand, if you don’t drink or smoke, you’ll lead a healthy lifestyle and help keep the cost of term insurance from rising.

  • Selected sum assured:

It is the most prominent aspect that raises term insurance premiums per the policyholder’s preferences. The higher the sum assured, the higher the premium.

If you use an online term insurance premium calculator, you’ll see that the term policy premium increases as the life insurance coverage rises.

  • Premium payment duration:
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You can select from a variety of premium payment choices with various term insurance policies, depending on your preferences. Regular payments, in which you decide to keep paying the premium for the duration of the policy, are the most typical method of paying term insurance premiums.

Strategies for lowering term insurance premiums

  1. Purchase term insurance when young

Age is a factor in increasing term insurance premium. By purchasing a term plan early in life, you can save more and provide financial stability for your dependents in the long run.

  1. Select a policy with a longer term

A specific insurance premium is spread out throughout the policy period you select. The insurer may demand specified compensation if the risk factor remains the same at a given age. When the tenure is shortened, the term insurance premium goes up.

  1. Only choose the necessary riders.

Including riders with the base, the plan can improve a term plan even more by adding more perks. These extra fees for these riders are justified, given the advantages they provide.


Your needs are unique, just like every term insurance plan. Because of this, selecting a term plan requires a careful evaluation of the various plans based on multiple criteria, including price, benefits, and the insurer’s reputation, to mention a few.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Tax benefit is subject to change in prevalent tax laws.

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