Top Factors That Influence Life Insurance Rates in 2025
If you’ve ever applied for life insurance and wondered how they come up with your premium, you’re not alone. Whether you’re shopping for term life insurance, whole life insurance, or something in between, the amount you pay each month (aka your premium) is based on a handful of key factors.
In 2025, more people are searching phrases like "how much does life insurance cost?" or "why did my life insurance quote go up?"—and we’re here to break it all down for you.
What Determines Your Life Insurance Premium?
Life insurance companies use a process called underwriting to evaluate your risk and calculate your monthly premium. The goal? To estimate how likely you are to make a claim—and how soon.
Here are the top factors influencing life insurance rates in 2025:
1. Age
The younger you are when you buy life insurance, the lower your premium. That’s why we always recommend locking in rates early.
Need more proof? Check out our post on How a Whole Life Policy Provides Lifetime Financial Benefits—especially helpful if you're thinking about life insurance for kids.
2. Health History
Chronic conditions like high blood pressure, diabetes, or heart disease can raise your rates. That’s why companies often require a medical exam or access to your health records.
3. Lifestyle Habits
Are you a smoker? Into extreme sports? Your hobbies and habits matter. Anything that increases your risk will likely increase your premium.
4. Type of Policy
Term life insurance is usually cheaper than whole life insurance or universal life, but the coverage length is limited. Whole life builds cash value over time—which is great if you're planning for long-term financial flexibility.
Want to learn more about policies that build value? Read Set Your Child Up for Success: Whole Life Policy Benefits.
5. Coverage Amount
The more coverage you want, the more it’ll cost. Pretty straight forward—but remember, it’s not always about the highest number. It’s about what makes sense for your family’s needs.
How to Get the Best Life Insurance Rates in 2025
Shopping for life insurance doesn’t have to be overwhelming. Here’s how to score a better premium:
- Buy when you’re young and healthy
- Choose the right policy type for your goals
- Quit smoking or improve your lifestyle habits (yes, they really check!)
- Compare quotes from multiple insurers
- Work with a licensed agent who knows how to find value
If you’re comparing life insurance options and unsure where to start, don’t miss our guide on Understanding Rate Classes in Life Insurance.
Life Insurance Terms to Know
To help you feel more confident when comparing policies:
- Life Insurance Premium – What you pay, usually monthly
- Underwriting – The risk review process used by insurance companies
- Death Benefit – The pay out your loved ones receive
- Term vs. Whole Life Insurance – Temporary vs. lifelong coverage
- Cash Value – The savings component of permanent policies
Need Help Finding the Right Life Insurance Coverage?
At Insurance Elevated, we make finding the right life insurance plan simple and stress-free. We’ll explain the jargon, compare top carriers, and help you lock in the best rate for your unique situation.
