7 Factors that affect Life Insurance Costs in Australia [Infographic]

A number of factors are taken into consideration when you apply for a life insurance policy. Not only are you asked a series of questions about your lifestyle, health, job, and medical history. Next time you are applying for life insurance, it’s important to create a checklist to make sure that everything goes smoothly.

It would be best if you were always sure of the requirements and procedures before you start the process. Here are seven essential factors that will affect your premium for life insurance. You should check them off your list to ensure a smooth process.


Your age is important. A lower premium is guaranteed if you purchase life insurance when you are younger. This is because it’s expected that you will make fewer claims.

#2 Gender

Women pay lower insurance premiums than men, as most women live five years more than men.

#3 Career

What does a job entail? Is there any risk to your life in this job? Insurance companies charge higher rates for jobs that are considered high-risk because they believe you will be more likely to file a claim.

4 Lifestyle Habits

Do you smoke, or do you drink alcohol? Do you smoke or drink? Smokers are more likely to pay a higher premium due to their health risks.

Family Health History

Does anyone in your family have a hereditary chronic disease such as cancer, heart problems, or diabetes? Your insurance premium will likely increase if you have a family history of genetic chronic diseases such as cancer, heart problems, Alzheimer’s, or diabetes.

#5 Existing/ Previous Illnesses

You will also pay higher premiums if you have had a chronic illness. If you can prove to your insurer that you have control over your condition, you may be able to get a lower and preferred rate.

#6 Driving Record

Reckless driving can be a major risk to you or your insurer. It automatically results in a higher rate of premium.

Life insurance costs and premiums are affected by your lifestyle and that of your family.

Do not be alarmed if your insurer asks you probing questions. Insurers need to know your life expectancy in order to make sure you can pay your premiums. This is to ensure that your family will be taken care of in the event of your death.

“Failing to disclose pertinent data can lead to the insurer canceling your policy or denying claims.”

You may be required to have a full medical checkup or physical examination in order to qualify for some policies. All policies do not require this, but the insurer may insist if you already have a pre-existing condition. It is done to make sure that you have not overlooked any needs and to verify your health at the time of applying.

Not all life insurance companies assess applicants the same. Some companies will refuse to cover high-risk applicants. Others may cover them despite their risky lifestyle, occupation, hobbies, or medical conditions. Even with these factors, you can still expect to pay higher premiums or have certain exclusions.

It’s always good to know your risk profile. This is because it can help you determine the likelihood of claiming a life insurance policy before the expiration date.

List all your lifestyle factors, occupational risks, and dangerous hobbies that could affect your insurance requirements. Then, consider how different policies will handle these. This infographic will provide a detailed graphic representation of all the information needed. Let’s take a look.

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