There are several factors that can influence the cost of a life insurance policy. Your age, any medical conditions – your own and your family’s medical history – and whether or not you are a tobacco user will probably have the biggest influence on cost. Other factors that impact on the price are your gender, whether or not you are a home owner, your BMI (Body Mass Index) and your occupation. There are other, more obtuse factors that can also affect the cost; for instance any hazardous hobbies, and whether you regularly travel to unusual places.
As well as these factors what will ultimately dictate the cost is the type of policy you opt for, the length of the policy and the type of cover. There are 3 main types of cover available: level, increasing or decreasing.
You can opt to pay the installments yearly or monthly. However if you opt to pay monthly bear in mind that there can be additional fees that might work out more expensive when compared to the total cost of an annual premium.
If you are young and healthy your premiums will probably cost a lot less than you might think. According to LifeSearch 3.5% of life insurance policies are purchased by people under the age of 25 and for this category (young and healthy) it may be possible to begin a policy for as little as £5-£6 a month. Another example of how life insurance could cost less than is commonly thought is to take a 41 year old, non-smoking male If he sets up a premium to insure himself for £15,000 he could get cover for just £2.71 per week. These are representative amounts only and your quote will be personalised to your own circumstances.
As mentioned the amount you pay is dependent on the individual, and smoking / tobacco use does impact quite dramatically on premium price. For example a male smoker aged 45 assured of £150,000 on his death could pay a monthly premium of around £44 over 21 years. Whereas a non-smoking male of the same age could save up to £396 per year (around £11 per month) a savings of £8,316 in total over the term. If you begin you term as a smoker then you quit, be sure to tell your insurer as this will reduce your cost; as long as you haven’t used tobacco or nicotine substitutes for at least (in most cases) 12 months.
Due to the many factors described that can influence the cost of life insurance, the best thing to do to calculate the cost for you personally is to click for a free, no obligation quote to see what the cost would be for you.