What affects your price
Insurers price a policy based on how likely they are to pay a claim during the coverage period. These are the main factors:
| Factor | Why it matters | Impact |
|---|---|---|
| Age | Younger applicants pay less, and each year you wait raises the price of a new policy. | High |
| Health | Your medical history, current conditions, height and weight place you in a health class. | High |
| Nicotine use | Smokers and vapers typically pay much more than non-smokers. | High |
| Coverage amount | A bigger death benefit costs more, though the price per dollar of coverage often drops as coverage grows. | Medium |
| Term length | A 30-year term costs more per month than a 10-year term. | Medium |
| Policy type | Permanent policies cost far more than term because they last for life and build cash value. | High |
| Sex | Women generally pay less than men because of longer life expectancy. | Low to medium |
| Hobbies and driving record | Risky activities like piloting or scuba diving, and DUIs, can raise your price. | Varies |
Health classes, explained
After underwriting, the insurer places you in a health class. The better the class, the lower your price. Names vary by insurer, but they usually look like this:
- Preferred plus: excellent health and family history. The lowest rates.
- Preferred: very good health, maybe one minor issue.
- Standard plus: good health, with a few minor issues.
- Standard: average health for your age.
- Substandard or table rated: significant health conditions, with a higher price.
Nicotine users are placed in separate tobacco classes with higher rates.
See your own price
The fastest way to see real numbers for your age, health and state is to get a quote. It takes about five minutes and doesn't require a phone number.
Term vs. permanent: the cost difference
Term life only pays if you die during the term, so it's much cheaper. Whole life and indexed universal life cover you for life and build cash value, so the same death benefit often costs several times more each month. For most families who need a large amount of coverage for a set period, term offers the most protection per dollar.
7 ways to lower your price
- Buy sooner. Your rate is locked in based on your age and health when you apply.
- Quit nicotine. Many insurers offer non-tobacco rates once you've been nicotine-free for at least 12 months.
- Choose the right term. Match the term to your need, like until your youngest turns 22, rather than buying longer than necessary.
- Buy the right amount. Use the DIME method to avoid over-insuring or under-insuring.
- Consider laddering. Two smaller policies with different terms can cost less than one large policy, as your needs shrink over time.
- Pay annually. Many insurers charge a little less if you pay once a year instead of monthly.
- Compare insurers. Each insurer rates health conditions differently, so the lowest price for you may come from a company you haven't heard of.
Frequently asked questions
Will my premium go up over time?
Not with a level term policy or whole life: your premium stays the same for the length of the term or for life. Premiums on some universal life policies can change.
Do I need a medical exam to get the best price?
Not always. Many insurers offer their best rates without an exam to healthy applicants who qualify for accelerated underwriting.
Is life insurance through work cheaper?
It can be low-cost or free, but coverage is usually limited and often ends when you leave the job. Healthy people can often get more coverage for less with their own policy.
Can I lower my price later if my health improves?
Sometimes. If you quit smoking or your health improves, you can ask your insurer to reconsider your class, or apply for a new policy.
Ready to see what coverage would cost you?
Get my free quote