How Life Insurance Premium is Calculated?

When you buy life insurance, the insurance company develops a premium based on several factors they take into consideration to determine the risk you present to be insured for life insurance.

The type and amount of life insurance are important in determining your premium.

However, the insurer begins with your personal risk factors that affect your longevity - life expectancy.

Risk factors usually include your gender, age, health, tobacco use, location of residence, driving record, height-to-weight ratio, among other things.

The insurer uses the information provided by your health exam, application for coverage, and review of your MVR to develop a rate per $1,000 of life insurance protection.

Learn more about how life insurance premiums are calculated.