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Factors Influencing the Premium of Your Online Term Policy

Thinking of buying term insurance? Great! After all, buying the best term plan online can help you secure the future of your loved ones. Term insurance can provide for their needs and goals in the unfortunate event of something happening to you.

So, if you are even just the tiniest bit familiar with this insurance, you probably know that certain factors influence the premium that you need to pay for your plan. Although, its true for all types of insurance, for term insurance though, it seems extra personal. So, let’s take a closer look at these factors and understand how they influence the premium of your online term plan.


Not surprisingly, the number one factor that life insurance companies consider while deciding the premium amount is your age. If you are young, the chances are that you will be paying your insurance company for years before it ever has to worry about writing your beneficiaries a cheque.

This is because the possibility of a young individual passing away or contracting a life-threatening disease in their youth is unlikely. Therefore, your premium will be lower in comparison to someone older.


The state of your health is another important factor that determines the mortality risk and therefore, your life insurance premium. For this purpose, before issuing a policy, most insurance companies ask for your total health status. Their underwriting process includes a medical exam in which they record cholesterol, height and weight, blood pressure, and other key metrics.

So, if you are fit and healthy and do not come across any fatal health issues or chronic conditions, the premium charged will be on a lower side and vice-versa.

Nature of Occupation

The kind of job you do or the occupation you are involved with is another deciding factor of mortality risk. For instance, firefighters, armed forces, pilots, miners, and fishermen face higher risks to their everyday lives and, therefore, have to pay more premiums than individuals with a desk job, teachers, shop workers, etc.

Simply put, if you are working in a safer environment, you will pay lower premiums than those who are not.

Lifestyle Habits and Hobbies

Individuals with habits such as smoking, drinking, and chewing tobacco have to pay more because of the many health risks inherent in these habits. But the good news is that one can qualify for lower rates within a year if one quits smoking.

Furthermore, according to insurance companies, individuals who are adventure sports junkies or involve themselves in high-risk hobbies like skiing, sky diving, car racing, mountain climbing, etc. are more likely to meet an accident than others. Therefore, the premium charged is high for such individuals considering their involvement in adventure sports or dangerous hobbies.

Family’s Medical History

If you have a family history of serious ailments, i.e., your father or mother have been contracted with life-threatening diseases like heart diseases or cancer; it will affect your premium amount. As from a hereditary perspective, it makes you susceptible to get these ailments.

There are also other factors like gender, coverage amount, policy term, additional riders, etc. that influence the premium amount of your term life insurance policy. In simpler words, every factor associated with your life and health can have an impact on the amount of premium that you are required to pay for your policy.

On the positive note, you can lower your premium payment by adopting a healthy lifestyle, controlling your food habits, and opting for an online term policy. Controlling the factors which are within the ambit of your influence can save you a lot on premium.

While availing the necessary life cover, ensure that you purchase the best term plan online only from a reputed and trusted insurer. Also, in addition to the benefits offered, don’t forget to check out the claim settlement ratio of the insurer. For instance, Maxlife Insurance’s online term plan comes with ample benefits for policy seekers including affordable premiums, monthly income payout option, flexibility to increase cover at major milestones, tax benefits u/s 80C, etc. Additionally, the claim settlement ratio of this insurer is currently the highest amongst all life insurers – 98.26% (FY 2017-18).

So, make an informed decision today and secure the future of your dear ones at the earliest

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