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Life Insurance

The Main Factors That Influence the Price of Life Insurance

June 2, 2023

Thinking about buying life insurance? Smart! But do you know what factors will influence the cost of your premium? While most insurance companies establish their own specific criteria to justify their pricing, several factors are used across the board. We’ll go over a few so you can get a sense of the ones that apply to you and could impact the premium you choose.

In this article:

Your individual criteria

Several factors specific to you will have an impact on pricing. For example, when determining your premium, companies consider the following main individual factors:

  • Your gender: Men can expect to pay more than women. The reason is that men’s life expectancy is shorter, though not by much (on average, in Quebec in 2021, men had a life expectancy of about 81 years versus almost 85 years for women).
  • Your age: The younger you are when you buy life insurance, the less expensive your premium will be, as your risk of death increases with age.
  • Your health status: Because a healthy person is generally less likely to die, they will pay a lower life insurance premium. Be aware that most insurers will ask you about your weight, height, medical visits, previous or chronic illness, medical history, etc. A medical examination or certain tests may also be required to establish your insurability.

Smoker or non-smoker?

Since tobacco use is linked to many serious health problems (cancer, coronary heart disease, lung disease, etc.), smoking is a significant mortality risk factor that insurance companies consider. Note, however, that someone who stops smoking for 12 consecutive months can contact their insurer to renegotiate their policy at a lower price as a non-smoker.

The table below compares smoker and non-smoker profiles of people at different ages. You can also read our article How Do I Choose the Right Amount for My Life Insurance? to learn more.

  Monthly premium
Monthly premium
10-year term
life insurance
with $250,000
face value
Woman, 25 years old $11 $16
Man, 25 years old $14 $25
Woman, 50 years old $32 $76
Man, 50 years old $43 $126
Woman, 75 years old $152 $283
Man, 75 years old $220 $530

Your lifestyle

Are you a fan of extreme sports (parachuting, scuba diving, climbing, etc.) or do you enjoy travelling to countries at risk? Insurance companies see these activities as factors that increase your risk of mortality. As a result, your insurance premium will be higher. The same is true for alcohol or drug use, as well as certain riskier types of jobs—police officer, firefighter, construction worker, etc.

Still have questions about the life insurance offered by Matcha Insurance? Our financial security advisors are available to answer any questions you may have and to reassure you.

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The type of policy you choose

When it comes time to buy life insurance, you have a choice of products: term, universal or whole life. Some companies also offer the option to purchase life insurance without a medical examination. The various policies have specific criteria that significantly influence the price. To learn more, we encourage you to check out our article Five things you need to know about life insurance

Your premium amount and policy term

Of course, the higher your coverage amount, the higher your premium will be. The same goes for your policy term. The longer the life insurance policy is in effect, the higher the premium. Since the risk of death is higher over a 25-year period than over a 10-year period, short-term life insurance policies generally cost less than long-term policies. Other factors may also impact the cost of your insurance premium. That’s why we suggest getting in touch with an advisor at Matcha Insurance to discuss your situation, so you can make an informed choice that truly meets your needs. Call us today at 1-844-532-3228 or Make an appointment.


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