Factors That Affect Life Insurance Rates

Many factors influence your life insurance premium. Understanding these helps you anticipate costs and take steps to potentially qualify for better rates. Canadian insurers use sophisticated risk assessment models that consider dozens of variables.

While some factors like age and gender are fixed, others can be improved. Knowing what insurers look for helps you prepare strategically before applying and potentially save thousands over the life of your policy.

Health-Related Factors

Medical History

Past and current health conditions including heart disease, cancer, diabetes, and mental health are carefully evaluated.

Build & Vitals

Height-to-weight ratio (BMI), blood pressure, cholesterol levels, and resting heart rate all impact your rate class.

Family History

Heart disease, cancer, or stroke in parents or siblings before age 60 may result in higher premiums or exclusions.

Current Medications

Prescription medications reveal underlying conditions - insurers review the type, dosage, and duration of use.

Lifestyle Factors

Tobacco Use

Any tobacco use in past 12 months typically results in smoker rates, 2-3x higher than non-smoker. This includes cigarettes, cigars, pipes, chewing tobacco, and nicotine patches or gum.

Alcohol Consumption

Excessive alcohol use can increase rates or result in declines depending on severity. Treatment history is also reviewed.

Dangerous Hobbies

Skydiving, scuba diving, rock climbing, racing, and similar activities may add ratings or require exclusions.

Driving Record

DUIs, multiple violations, or license suspensions can significantly impact rates or lead to decline.

Occupation and Travel

High-Risk Occupations

Mining, commercial fishing, logging, roofing, and similar occupations may result in premium loadings or exclusions.

International Travel

Travel to high-risk countries may affect coverage terms, especially for extended stays in conflict zones.

Be upfront about these factors when applying - non-disclosure can void your policy later when your family needs the death benefit most.

2026 Premium Impact by Factor

Factor	Premium Impact	Example ($500K, Age 40)
Tobacco Use	+150% to +300%	$45 → $115-$180/month
Obesity (BMI 35+)	+50% to +100%	$45 → $68-$90/month
Controlled Diabetes	+25% to +75%	$45 → $56-$79/month
High Blood Pressure	+10% to +50%	$45 → $50-$68/month
Family History	+10% to +25%	$45 → $50-$56/month
Dangerous Hobby	+25% to +75%	$45 → $56-$79/month

Common Mistakes

Not disclosing health conditions

Full disclosure is required - non-disclosure can void your policy when you need it most

Assuming all insurers rate the same

Different insurers specialize in different conditions - shop with a broker who knows the market

Not improving health before applying

Even small improvements like better blood pressure can move you up a rate class

Ignoring family history impact

Some insurers weight family history less - find one that fits your profile

Keys to Better Rates

Work with an independent broker who knows which insurers favor your specific health profile
Get a pre-application assessment before formal underwriting begins
Provide complete and accurate information on your application
Request reconsideration if you've improved health factors since initial rating
Consider waiting 12 months after quitting tobacco to qualify for non-smoker rates
Ask about informal inquiries to test the market before applying