How Your Age Affects Life Insurance Premium

By Laxita Gautam
  | Published: 18 November 2021

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A life insurance premium is an amount paid by the policyholder to the insurance company. In exchange for this amount, the insurance company pays the sum assured to the policyholder’s beneficiary in the event of their disability or demise. The insurance companies calculate the life insurance premium amount based on different factors such as age, gender, and employment status of the applicant.

The insurance companies offer various payment methods for policyholders to help them pay their premiums with great ease. They can pay the same monthly, quarterly or yearly depending upon their financial preferences.

You can also calculate the life insurance premium using online insurance premium calculators. To find the payable insurance premium amount, you need to provide some basic details, including monthly income, age, gender, location and more. Keep reading to find out the factors that affect the life insurance premium.

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Factors That Affect Life Insurance Premium in UAE

The insurance companies in the UAE consider various factors while calculating the insurance premium for the applicants. Here is a precise list.

  • Age - The age of the applicant is one of the critical elements that affect the life insurance policy premium. The younger-aged applicants are less prone to getting sick, so they get lower insurance rates.
  • Gender - The gender of the applicant affects the life insurance rates. The insurance companies in the UAE offer lower life insurance premiums for female applicants.
  • Health Status - The overall health of the applicant also affects the life insurance rates. Some insurers take weight and pre-existing medical conditions into consideration while evaluating the insurance premium. 
  • Smoking Habits - The applicants’ lifestyle, including their drinking and smoking habits, also affects the insurance premium amount.
  • Employment Status - The occupation and employment status of the applicant has a great impact on the life insurance rates. Some life insurance policies in the UAE have an eligibility criterion that requires that the applicant must be working for a registered firm.   
  • Hobbies - The applicants’ participation in risky hobbies and adventurous games like sky-diving or hang-gliding also enables insurers to charge higher insurance rates for the applicants.

How Age Affects Life Insurance Premium?

As per various insurance experts, the right time to buy a Life insurance policy is when you are young. The insurance companies offer lower interest rates for young applicants because they are healthy and less prone to getting  sick. Most insurance companies make applicants go through various medical tests to check their existing medical conditions. At a young age, you have fewer or no health issues and can get good insurance rates.

Another reason why age impacts the life insurance premium is that at an older age, you have more responsibilities and would need more financial protection to support your family. On the other hand, you have lesser responsibilities and a few dependants at a young age, so even the lower sum assured works for you. As a result, small insurance coverage leads to lower insurance premiums.

You may also like this - Top Hidden Factors That Determine Your Life Insurance Rate in UAE

The Bottom Line

Finding the best insurance plan with the lowest insurance rates is now just a few clicks away. We at Policybazaar help our customers get the best possible insurance rates based on their preferences and the amount of coverage they choose. 

You can visit the life insurance policies section on our website to find the best-fit insurance plan for yourself. If you need help in understanding the premium amount break-up, you can give us a call anytime. Our financial experts will explain everything to you in detail and help you buy the chosen life insurance policy without any hassles.

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Laxita Gautam
Laxita Gautam

Senior Content Writer | She functions on classic British fiction, Japanese manga, and strong americanos. Laxita is tailor-made to create engaging, interactive pieces that offer simplified insights into complex subjects.