How Life Insurance Premiums are Calculated

Life Insurance premiums are different for everyone. They are based on your specific health, behaviors, and other risk factors by the insurance company’s underwriting department.

You can receive a quote based on your age, basic health, and whether or not you are a smoker, which will give you a ballpark estimate of your true premium. Usually the final premium will vary only slightly from your initial quote, if you have been truthful in disclosing your medical history.

Your actual premium will be based on:

1. Medical Exam Assessment for Abnormal Functions
2. Family Medical History, Driving Record, and Medical Information Bureau Report
3. If more information is needed, medical history from your doctor’s will be ordered.

All insurance companies have different underwriting guidelines so it is important to get a few quotes to compare your options. Be sure you are comparing equal policies. To learn more about comparing policies please see comparing life insurance quotes and policies.