A lot of people don’t know this but the total monthly premium that you are supposed to pay your insurer every month is not determined as easily as might you think. For that reason, answering how much it costs can never be said for certain. It all boils down to risk, statistics and some clever mathematics, and aligning the best possible risk profile with the company objectives.
To do that, the insurance companies need to define who their ideal client should and then use that model to determine who pays what according to their own risk profile. That is why you tend find yourself answering a bunch of questions for the majority of the quoting process.
You might not find surprising to know that the closer you are to the ideal risk profile, the cheaper your premium is going to be. The whole reason for that is because they know you are going to be a low risk to them and they can afford to offer you a cheaper premium. When it comes to life insurance specifically, the things that are more likely to increase your life span are the factors that will help bring your premium down, essentially because it will allow you to have your policy in effect for longer. What that basically means is that you would be paying a lot more money to an insurer over a period of 25 years than you would if you only had it for 15.
If you are not certain of all this then you can take a look at any one of the insurance sites to get all the information you need. Pricelineprotects.com.au is a good example of such a site, although this one in particular is for Australia, you should be able to find something similar for your own country.
When you maintain a healthy and active lifestyle, you generally extend your lifespan and put yourself in a lower risk category in comparison to a person that smokes for example. People often try to argue that there are other factors that could affect the risk of a person regardless of whether or not they smoke, but then you have to realise that those additional factors often affect everyone equally. With all other things equal the fact that you are smoking immediately increases your risk.
Your finances and your health are the main factors that they combine and use them to determine how much you pay each month and then you can decide whether you want the cover or not.
By John Benson