Contrary to popular belief, life insurance premiums are not based solely on your health. There are quite a few factors that go into calculating how much your life insurance premiums will cost, as well as what time of payout will be given in the end.

Age 

There are a few reasons why your age can affect the cost of your life insurance. One is due to the life span of people of your sex, history, race, etc. Another is how close you are to retiring. The older you are, the more you may pay for life insurance because of the likelihood that a claim will be fired. Retired people also have less income coming in, but not necessarily less debt, which means a life insurance policy may have to compensate for lingering debts. 

Health 

When you go to purchase a life insurance policy, you will need to go through a health exam. Doctors will often look for high blood pressure, high cholesterol, anxiety, heart disease, acid reflux, etc. Worse conditions can mean higher life insurance premiums. You can still get life insurance if you have pre-existing conditions, but it may also result in higher rates. 

Family Health History 

Not only your health matters when it comes to health insurance. If you have a history of certain medical conditions and illnesses in your family, such as hereditary conditions and cancers, you could pay more for your life insurance policy. 

Salary 

The amount of life insurance you should carry is recommended to be around 6-10 times your annual salary. This means you will need more coverage the more you make, which in turn raises your premiums. It is important to have the right amount of coverage compared to your salary because it will help your loved ones after they no longer have your income to rely on. 

Hobbies and Habits 

Surprisingly, how you spend your free time can often have an affect on the cost of your life insurance policy. If you have habits such as smoking cigarettes, your life expectancy statistically goes down. In return, your life insurance premiums go up. This is also true if you participate in high-risk hobbies such as car racing, bungee jumping and skydiving. Of course, going on one skydiving trip won’t typically affect your policy. But if you frequently participate in high-risk sports or activities, it could raise your rates.