Certain aspects of a person’s lifestyle or medical history may substantially reduce their life expectancy and therefore increase their life insurance premiums.

One of the main factors affecting life insurance premiums is age, the older the individual the higher the premium. Although many in their early twenties may not yet have dependents for whom they need to provide in the event of their death, they are still encouraged to take out life insurance, because the premiums will be less expensive and remain cheaper for the rest of their lives or the term of the insurance.

Many insurance companies require that people have a thorough medical examination, including tests for blood pressure and cholesterol, before taking out a life insurance policy. Lifestyle has an impact on life insurance premiums, therefore participating regularly in dangerous sports or having a job that is considered dangerous results in increased premiums. Certain activities may be excluded from a policy and if the policyholder were to die whilst taking part in such an activity, the sum assured would not be paid out. Smokers and men pay higher premiums, because statistically, women live for longer.

Some people may be tempted to withhold certain information that they believe will increase their life insurance premiums, but if it is discovered after their death then the insurance company can refuse to pay out.
 
Critical Illness cover can be added to an insurance plan and the sum assured would be paid out should the policyholder be diagnosed with a qualifying critical illness. Depending on the individual’s medical history, some illnesses may be excluded from the policy.