6 Factors That Affect the Cost of Your Life Insurance Premiums

Life insurance premiums are the regular payments made by policyholders to their insurance companies to maintain their coverage.

The cost of these premiums can vary depending on a range of factors.

In this blog post, we will examine what influences the cost of life insurance premiums and how you can save money on your coverage.


Age is one of the most significant factors that influence the cost of your life insurance premiums.

Generally, purchasing life insurance at a younger age results in less expensive premiums.

This is because younger individuals are typically healthier and less likely to die unexpectedly, meaning they pose less of a risk to insurance companies.

So, if you’re young and insurance can fit into your budget (it’s more affordable than you think!), let me help you customize your first life insurance plan.


Health is another major factor that affects the cost of your life insurance premiums.

Individuals who are in good health, maintain a healthy body mass index, and do not smoke are deemed lower risk by insurance companies and can expect to pay lower premiums.

However, individuals with pre-existing conditions, a history of serious illnesses or hospitalizations, or who engage in high-risk activities such as skydiving or scuba diving may face higher premiums.

Yes, they can still apply for life insurance but expect to submit requirements related to their health condition. Recent doctor’s certificates and lab tests are some requirements that may be asked to be submitted by the insurance company.

We buy life insurance with our health and only pay for it with our money.

Type of Policy

The type of life insurance policy chosen can significantly impact your cost of premiums.

Term life insurance policies are usually less expensive than permanent life insurance policies because they provide coverage for a specific period rather than an entire lifetime.

To know more about the types of life insurance in the Philippines, download my free E-book here.

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First-time Life and Health Insurance Buyer's Guide

Amount of Coverage and Benefits

The amount of life insurance coverage needed also influences premium costs.

To put it simply, higher coverage amounts and more benefits result in higher premiums.

This is because insurance companies assume a greater risk by providing a larger payout in the event of an unexpected death or illness.

Therefore, it’s essential to carefully evaluate the required coverage amount and work with me as your financial advisor to determine the appropriate insurance coverage.


Sex can still affect the cost of life insurance premiums.

Historically, women have paid lower premiums than men because they tend to live longer and are considered less of a risk by insurance companies.

In recent years, this gap has been decreasing and premiums can vary widely based on individual factors.

But, when it comes to health risks, women tend to pay more for health insurance coverage due to a higher risk of getting illnesses compared to men.

Hobbies and Occupation

Certain hobbies, such as extreme sports or high-risk activities like skydiving, bungee jumping, or rock climbing, can increase the risk of injury or death and, therefore, result in higher premiums.

Similarly, individuals working in high-risk occupations, such as firefighters, law enforcement officers, or pilots, may face higher premiums due to the increased risk associated with their jobs.

It’s important to disclose any relevant information about hobbies or occupations to the insurance company and me as your agent to ensure that the coverage is accurate and reflects your potential risks.

Influence Your Life Insurance Premiums

While some factors such as age and gender are beyond your control, you can take measures to lower your premiums.

Maintaining a healthy lifestyle, selecting the appropriate type and amount of coverage, and working with a licensed insurance agent or financial advisor like me can all aid in reducing your life insurance premiums.

Understanding the factors that affect the cost of life insurance premiums empowers you to make informed decisions about your coverage, ensuring that your loved ones are protected in unforeseen events.

Ready to make an easy decision to get life insurance? Leave your details below:

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When he is not busy watching "The Office", lounging at the beach, or playing 1st person shooting games, Argel consistently invests in the stock market, both local and global. He loves learning through books, training, seminars, and workshops. He also helps Pinoys create, manage, grow, and protect their wealth as a globally-certified Professional Financial Advisor. Get in touch with him by sending an email to contact[at]argeltiburcio.com

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