5 Factors That Can Influence How Much You’ll Pay for a Policy

BY Sagicor Life Posted May 16, 2019 In Sagicor Life USA Tips

When asked, 66 percent of people in a recent survey admitted having a need for life insurance, yet 43 percent continue to go without coverage. The reason? Cost. Not being able to afford life insurance is one of the most common reasons people give for not having it but, the truth is, many people continue to overestimate the true price. Life insurance isn’t priced as a one-size-fits-all product, meaning there are several factors — in addition to your age — that will determine just how much you’ll pay for a policy. They include:


1. Smoking

On average, smokers pay up to 260 percent more for coverage compared to nonsmokers. This category includes the use of e-cigarettes and chewing tobacco. Most insurers have specific risk classes to determine just how much coverage to offer a smoker and at what rate. In general, they include Preferred Smoker (nicotine user but otherwise healthy) and Standard Smoker (nicotine user but with contributing health issues). 

Buying tip: If you applied for coverage as a smoker, ask your agent about resubmitting your application as a nonsmoker after you’ve been nicotine free for at least one year.

2. Your family’s health history

You’ve probably guessed that having a parent or sibling who died from a genetic disease (e.g., cancer, heart disease, or diabetes) can negatively affect your rates. What you may not know is that the age they died can also affect the cost. While every insurer is different, in general, having an immediate family member who died before age 60 could mean paying a higher premium.

Buying tip: Be upfront about your family health history. A proactive agent will work with you to secure the best possible rates.

3. Your lifestyle and occupation

Engaging in high-risk activities such as skydiving, mountain climbing, or car racing could have you paying more for coverage — for obvious reasons. Having a hazardous occupation may also be a factor.

Buying tip: Every insurer has its own rating criteria. Shop around, get some quotes, and compare rates. Sagicor makes it quick and easy to complete an application — all online.

4. Your personal health

Elevated cholesterol, higher than normal blood pressure and being overweight are all factors that can affect your rates — even if you’re young.

Buying tip: Some life insurers may allow you to reapply for coverage if you lose weight or if you can prove that your health issues are controlled or have improved.

5. Your driving record

Unsafe driving habits can put you at risk for a fatal accident, which is why it’s not uncommon for an insurance company to review your driving record when determining your rate for life insurance.

Buying tip: Every insurer is different, but in general, major driving violations within the past three years could mean paying higher premiums. Improving your driving record over time can help you secure more affordable rates.

  These are just a few of the factors that can affect how much your life insurance policy will cost. Remember, the cost of a life insurance policy depends on the insurance company and how it rates each factor and is determined on an individual, case-by-case basis. That is why it’s so important to do some comparison shopping. When you’re ready, go to Sagicor to receive a free quote in just a few seconds.


Sagicor is a registered trademark of Sagicor Financial Corporation Limited.

Sagicor Life Insurance Company issues life insurance and annuity products. Policies and riders are not available in all states and state variations may apply. Products have limitations and restrictions including surrender charges, contact Sagicor or a Sagicor agent.

Sagicor does not provide estate planning, legal or tax advice. We suggest you consult an attorney, accountant, or tax advisor.

Sagicor is rated “A-” (Excellent) by A.M. Best Company (4th best out of 16 possible ratings). This rating is based on Sagicor’s financial strength and ability to meet its ongoing obligations.

Sagicor Life Insurance Company (Home Office: Scottsdale, Arizona).

Life Insurance