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California Brokerage Insurance Associates Blog

All You Ever Wanted to Know About Insurance

Factors Affecting Your Life Insurance Rates

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If you check with your friends about what they pay for life insurance, you know that people pay different rates. That may make you wonder how insurance companies set the rates they charge. Truth of the matter is that it’s a complex formula, but there are some common factors that insurers consider. Here are a few of the most common ones.


It’s just a fact of life that older people have a shorter life expectancy than younger people. Insurance is all about evaluating risk, and the statistical probability is higher for an older person to die sooner than someone younger. Consequently, older people will pay higher rates for universal life insurance in California.


Statistically speaking, women live longer than men. That means they have more years to pay life insurance policies, and consequently, they pay lower rates with each payment.

Family History

When applying for life insurance, you’ll most likely be asked about your parents and siblings. Did they die young? Is there a history of heart disease, cancer, or another medical condition? Do family members suffer from high blood pressure or bad cholesterol? Some families seem to come out on the short end when it comes to health. If there's a pattern of health issues in a family, it increases the risk of you experiencing them, too.

Your Health

While insurers may ask about family history, they will more importantly want to know about your health. You may need to have a medical exam to check blood pressure, cholesterol, weight, and more. Depending on the insurer and your specific circumstances, other tests may also be requested when applying for whole life insurance in California.

Personal Habits

Smoking will definitely drive your rates up. Smoking’s connection to cancer and heart disease makes a person a vastly higher risk to insurers. The premiums of smokers will be significantly higher.

Work Life

The type of work you do can affect your rates. An arborist climbing trees is more likely to suffer an accident than an accountant at a desk. Consequently, the person with a more physically risky job may end up paying a higher rate. 

Life Insurance Is Important

Life insurance is one of the most important things to help protect your family’s financial future from the unexpected. A life insurance broker in California can help you understand the benefits of various policies. Life insurance is something every person should have to protect the financial security of loved ones.