How Life Insurance is Priced

Your health is one of the most important parts of determining your life insurance premiums. Healthier people are less likely to die soon, which means companies can charge them less money for life insurance. Younger people are also less likely to die soon, so life insurance is cheaper (on average) for younger buyers.

Women live longer, non-smokers live longer, people without complex medical problems live longer, and on and on goes the list. People in these groups will normally get preferential pricing for life insurance.

Some applications require a life insurance medical exam. They’ll check your weight, blood pressure, cholesterol and other factors to try to determine your overall health.

Some providers will issue life insurance without a medical exam, but you’ll typically pay more for coverage. You may also be limited to less coverage than you’re hoping for, with some larger insurers maxing out no-exam policies at just $50,000.

If you just need a small amount of coverage, Final Expense Life Insurance may be the most suitable. Employee life insurance can often cover basic end-of-life expenses and may cover some or all of your annual salary. Final Expense usually doesn’t require any exam and can also be guaranteed issue.