What is typically the biggest factor in determining life insurance premiums?

The biggest factor in determining life insurance premiums is the applicant's health status. Insurance companies assess the health of an individual seeking coverage as it provides critical insight into the potential risk the insurer is taking on. Generally, a healthier applicant is likely to receive lower premiums compared to someone with pre-existing conditions or a poor health history, as this indicates a lower likelihood of filing a claim in the near future.

Health assessments typically include evaluations of medical history, lifestyle choices like smoking or drinking, and overall physical condition, all of which can significantly influence premium rates. Life insurers use this information to determine their risk and adjust premiums accordingly to ensure they can cover anticipated claims while remaining profitable. Hence, health status stands out as the most significant factor.