1) Term Life Insurance provides coverage for a set amount of time (term), and the length of that term play a big role in the cost of the policy.
2) Permanent or Whole Life is designed to provide protection for the rest of your life and as a result, is usually more expensive than term life insurance.
This has the most significant impact on your life insurance premiums. Typically, the younger you are, the lower the cost of your life insurance. As you age, the risk of your health deteriorating increases.
Smoking has proven to be a risky habit, and insurance companies know this all too well. Those who smoke or vape are likely to pay significantly higher life insurance premiums, sometimes double that of non-smokers.
Statistically, women live longer and engage in healthier lifestyles. In general, because men are thought to die at a younger age – Canadian men live an average of 80 years – their premiums are more expensive than those of women, who on average live to the age of 84.
How you live your life could be an indicator of risk for insurance companies. From obesity and heavy drinking to high-risk behavior like skydiving or reckless driving, your lifestyle can increase your life insurance premiums.