Why You May Be Paying a Higher Term Insurance Premium?

Written by : Knowledge Centre Team

2025-08-20

1863 Views

10 minutes read

Locate branch

Resume journey

Pay Premium

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid

Mobile Number is required Mobile Number should be Valid

Email is required Email should be Valid

DOB is required DOB should be Valid

Annual Income*

< 3 3-5 5-7 7-10 > 10

Annual Income is required

I agree that even if my contact number is registered with NDNC / NCPR, I would still want the Company to contact me on the given number and email id for the clarifications/product information sought by me and agree that I have read and understood the Privacy Policy and agree to abide by the same.

Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Reasons for paying a higher premium for your life insurance policy could be many. The premium amount varies from person to person as it depends on various factors. Therefore, it is important that you know the factors that may impact your premium.

Key Takeaways

Your age and gender significantly affect life insurance premiums. Younger individuals and women typically pay less.
Disclosures matter. Non-disclosure of smoking, drinking, or high-risk hobbies can result in claim rejection.
Medical conditions and family history play a crucial role. Chronic illnesses or hereditary risks can increase premiums.
The more coverage you want, the more you’ll pay. Riders and higher sums assured raise the cost.
Choose wisely and early. Starting young with full transparency ensures lower premiums and long-term security.

There could be some factors which may not be under your control. However, some of them may be under your control. You have a chance to lower the premium that you pay if you understand each of the factors that have an impact on the premiums you pay for your life insurance policy.

Listed below are the major factors that influence the premiums of a policy:

Age: As you age, your insurance premium increases. The reason is that at a younger age, the chances of developing any critical health condition are low. Even if we do, we are likely to recover faster due to a robust immune system. As compared to younger people, older people are more susceptible to developing critical conditions due to ageing. Hence, it is always advisable to buy life insurance policies when you are still young.
Gender: Various studies have shown that women live longer than men. This is the primary reason why women have to pay a lower premium for their life insurance policy as compared to men. Since insurers assess risk based on life expectancy, women are considered lower-risk policyholders. Additionally, women tend to have fewer lifestyle-related illnesses and lower rates of risky behaviours, further contributing to reduced premiums. Some insurers even offer women-specific plans with added benefits like critical illness cover or maternity-related riders.
Block your Premium Rate by Paying a Higher Premium
Family Medical History: It is another factor that plays a vital role in deciding your premium. If an immediate family member has health issues such as heart disease, diabetes, cancer, neurological disorders, or other hereditary disorders, it increases your risk of developing them too. Hence, depending on your family medical history, you may be asked to pay a higher premium because the likelihood of claiming insurance costs is higher.
Learn how your family history impacts the premium.

Get the Best Term Insurance Plan for Your Needs

Full Name* Please enter correct name Please enter the Full name

Mobile Number* Please enter valid mobile number Please enter Mobile Number

Email* Please enter valid email Please enter Email

...Read more Consent is required

Smoking or Consumption of Tobacco: Smoking or tobacco consumption puts you at a higher risk of diseases like heart attacks, strokes, lung disorders, infertility, and cancer. Hence, the insurance premium amount for smokers and tobacco users is significantly higher than for those who do not smoke or consume tobacco. You need to disclose this habit to your insurer.
If you already have an insurance policy with a smoker status, and it has been a while since you quit smoking, chances are that your premium could be reduced. Check with your insurance company to see if and how the change from ‘smoker’ to ‘non-smoker’ status will affect your premium amount.
Alcohol Consumption: If you consume alcohol, your insurer may charge you a higher premium amount. It is because excessive alcohol consumption puts you at a higher risk of getting liver disorders and other ailments. Frequent alcohol use is also associated with accidents and mental health issues, which increase the overall risk profile for an insurer. During underwriting, insurers may ask about the quantity and frequency of your alcohol intake. In some cases, they might also request medical tests to assess liver function before determining the final premium.
Occupation: When you apply for a life insurance policy, insurance companies always ask about your occupation. Professions such as pilots, stunt men, firefighters, lifeguards, people who work in the armed forces, construction workers in high-rise buildings, toxic gas laboratory workers, and technicians working at radiation plants are considered to be high-risk jobs. Your premium could be higher if you work at a place that has a risk to life.
Current Medical Condition: Almost all insurance companies require you to undergo a complete health check-up before they issue you a policy. They access and review your health statistics to understand if you have any pre-existing health conditions. If you have hypertension, arthritis, diabetes, asthma, thyroid, obesity, cholesterol, or kidney disorders, you may pay a higher premium. It is because people with health conditions are more likely to claim insurance for various tests, diagnostics, medication, and treatments.
Your insurer will assess the risk before issuing you an insurance policy. If you have undergone any surgeries or procedures in past, you need to disclose them to your insurer. Some insurance companies may even ask you to serve a waiting period before your policy comes into force.
Hobbies: Hobbies, which involve a significant amount of risk, such as skydiving, bungee-jumping, mountaineering, racing car driving, or deep-sea diving, are considered to be risky. It is because you are regularly exposed to dangerous activities that can hurt you. It eventually increases the likelihood of claiming insurance. Insurers may even impose additional underwriting ratings, exclude these activities from coverage altogether, or charge a much higher premium.
Importantly, if death occurs while engaging in a hobby excluded under your policy, the insurer likely will not pay the death benefit to the nominee. Exclusions for risky activities are common in policy terms. If you regularly participate in such activities, failing to declare them during application can lead to claim denial due to material misrepresentation
However, the activities falling under the ‘high-risk’ category may vary across insurance companies. Hence, if you are involved in such activities, you need to compare quotes from various life insurers and choose the best one for your needs.

Body Mass Index (BMI): If you are overweight or have a sedentary lifestyle, you are more prone to lifestyle disorders like hypertension, diabetes, and heart attacks. People who have a BMI of above 30 are considered to be obese. People who have normal BMI (Body mass index) as per their age and height have a significantly lower premium than those overweight or unfit.
Policy Chosen by You: The insurance premium amount is directly proportional to the sum assured and the policy term. Sum assured is the maximum amount you can claim from your insurance company in case of a medical emergency.
A policy with more extensive coverage and a longer time frame will cost more than the insurance plans taken for a small sum and shorter period.
Hence, the type of policy determines how much premium you will be asked to pay. If you select any additional covers or riders like critical illness coverage, disability cover, waiver of premium, the cost of insurance is likely to increase.

Wrapping Up

When you buy a life insurance policy, it is essential to look at all the factors determining the premium. Make a well-informed decision to buy a policy that suits all your needs. Take quotes from various insurers. You must disclose everything to your insurer and not withhold any information. Buy a policy on time and pay less on premiums.

And remember, the younger and healthier you are, the more affordable your premiums will be. Acting early is the smartest financial move you can make for your family.

Ready to Take the Next Step?

Get personalised quotes, compare plans, and find the right life insurance coverage for your needs. Don’t wait for the “right time”, secure your family’s future today with Canara HSBC Life Insurance.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.