4 factors that determine the cost of life insurance (and how to keep costs low)

When you’re shopping for life insurance, it’s important to keep in mind that four main factors will affect the cost of your policy: your age, your gender, the length of your policy, and the amount of coverage you’re looking for. In this blog post, we’ll break down each of these factors and give you some tips on how to keep your life insurance costs as low as possible.

1. Age affects life insurance costs

Your age is one of the most important factors in determining your life insurance rates. In general, the younger you are, the cheaper your life insurance will be. This is because younger people are less likely to die than older people, so insurers see them as less of a risk. If you’re in your 20s or 30s and healthy, you can get a very affordable life insurance policy.

Tim’s Tips: Your needs will change as you get older. It’s important to review your policy as you transition into milestone events such as getting married, buying homes, starting families, and retiring. Make sure your coverage is always relevant to where you are in life.

2. Gender affects life insurance costs

Gender also plays a role in life insurance rates. In general, women tend to live longer than men, so they get lower rates. However, this doesn’t mean that men should just give up on finding affordable life insurance. Actually, men should start searching for life insurance sooner so they don’t end up paying higher rates down the road. There are plenty of other factors that will affect your rates more than gender does, so focus on the things you can control.

3. Policy length affects life insurance costs

The length of your life insurance policy will also affect your rates. The longer the term of your policy, the more expensive it will be. This is because a longer term means more years that the insurer will have to pay out if you die. However, if you’re young and healthy, you can get a very long-term policy for not much more than a shorter-term policy.

Tim’s Tips: Consider what your goals are for the policy, and select the best option based on how long that policy should be in place to achieve these goals. For example, if you opt for a solid Life Insurance Plan over Mortgage Insurance, you’ll want your policy to be at least as long as your mortgage amortization.

Coverage amount affects life insurance costs

Finally, the amount of coverage you’re looking for will also affect your rates. If you want a higher coverage amount, you’ll have to pay more per month. However, it’s important to make sure that you have enough coverage to take care of your loved ones if something happens to you. Work with an experienced agent to make sure you’re getting the right amount of coverage for your needs.


This doesn’t need to be complicated. If you have a question, just ask! Email us or give us a call and we can get to know each other. Coffee is on us!