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What Factors Can Increase Your Term Insurance Premium – Aegon Life

Sep 19, 2019 | 10 months ago | Read Time: 3 minutes | By iKnowledge Team
What Factors Can Increase Your Term Insurance Premium

While a term life insurance is essential for you, the term insurance premium amount may act as a hindrance towards getting this cover. If you are looking to buy a term insurance, there are several factors to keep in mind which is likely to determine the premium amount you pay.

Your Age

Your age happens to be the single most important factor when one determines the term insurance premium. Based on statistics and life expectancy, younger individuals are less likely susceptible to death when compared to older individuals. For this reason, premium amount is comparatively less for younger individuals than older ones.

Your Weight

Though appears to be unreal, the ‘Built Chart’ used by life insurance companies is an essential part of the underwriting process which calculates your height and weight ratio to specify you in a health class. If you fall under the overweight category, you’re likely to be prone to more health problems. These health problems can turn out to be a risky one because of which the premium amount you pay is more too.

Occupational Risks

Some occupations are considered riskier than other occupations according to the underwriters in an insurance company. For example, if you are a skydiving instructor or work at a chemical factory, you’re prone to more risks at work as opposed to a teacher or an account manager. Your occupation demands you take risky moves which can be life-threatening if gone wrong. For this reason, the premium varies based on your occupation. 

Smoking Habits

An individual who smokes tobacco is portrayed to be prone to health adversaries including cancer. If you are a regular smoker, tobacco or marijuana, you are likely to pay double the premium amount because of the health adversaries attached to it. That said, you can alter your premium amount if you have successfully quit smoking at least for a period of one year.  

Your Health History

Your health history plays a significant role in determining your term insurance premiums especially if the health issue has been a risky one. The underwriters can order an Attending Physician Statement or APS, and medical records to understand if you have had any past medical risks. They also consider aspects like the tenure of the health issue, when was it diagnosed, its treatment and post-treatment details and when was it resolved.   

Family Medical History

In addition to your health history, underwriters at life insurance companies consider your family’s health history like diabetes, cancer and heart diseases. If any of your family members have a history of any significant health issue, you are likely to pay a higher premium. This holds true especially in case of hereditary health issues.

Current Health Scenario

Your current health scenario plays a huge role in determining your premium amount. As a mandatory process, the underwriting team conducts a medical exam based on which your cholesterol, blood pressure and other health issues are analysed. If you are a healthy person you are likely to pay a lesser premium amount. If you are susceptible to any health issue now or in the near future, then your premium amount increases accordingly.

Marital Status

In case you and your partner are buying a term life insurance together, there are chances of saving more with a dual application. This doesn’t alter the premium, but the chances of saving money are likely to increase.


As per the gender mortality statistics, women typically live longer when compared to men. For this reason, women pay a lesser premium amount as they have a lower term insurance rate.

Policy Length

Your term life insurance policy is of a longer tenure then you are likely to pay a higher amount. The reason being that more the number of years your term life insurance policy covers (say 30 years), the more risk of dying as compared to short-term policy (10 years).  Based on your age and health conditions, decide a term insurance tenure and pay premiums accordingly.

Small things matter the most. And this falls true when insurance companies determine your premium amount. To know about Aegon Life’s life insurance policies and other products like health insurance, visit our home page.


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