Lock Low Premiums Early: How Age, Health, And Habits Shape Your Term Insurance

Age and health are two of the most critical factors influencing your term insurance premium. When you are younger and healthier, your risk of serious illness or death is relatively low, which means you can secure a high coverage amount at a very affordable premium.

Says Varun Agarwal, head, term insurance, Policybazaar: “As you grow older or if you have existing health conditions like diabetes, hypertension, or heart issues, your premium increases, because the insurer takes on a higher risk. That’s why it’s always advised to buy term insurance as early as possible — to lock in low rates for the long term.”

Lifestyle Habits Affect Your Life Insurance Premiums

According to Agarwal, lifestyle habits like smoking and excessive drinking are directly linked to higher health risks, such as cancer, heart disease, liver problems, and more.

“From an insurer’s perspective, these habits increase the likelihood of a claim during the policy period. As a result, smokers and heavy drinkers usually pay higher premiums compared to non-smokers because their life expectancy is statistically lower,” he says.

Adds Amit Suri, CFP, founder, Aum Wealth, “Maintaining a healthier lifestyle can make a visible difference in both your premium and your long-term health.”

So, when you are going for term insurance, especially for a high sum assured, insurers will have you undergo a health test to check your health condition.

Coverage Amount And Policy Tenure Also Play A Role

The coverage amount and the policy tenure you select have a direct impact on your premium. Higher coverage means a larger payout for your family in case of an unfortunate event — and naturally, a higher risk for the insurer, which leads to higher premiums. Similarly, if you choose a longer tenure (for example, coverage till age 75 or 85), your premium will be slightly higher because the insurer is covering you for a longer period.

Says Suri, “Pick a cover that’s enough to protect your family’s needs without overextending and overpaying.”

So, while taking life insurance early is definitely a good choice, it makes sense only if you have any financial dependents or any debt, such as an education loan or a home loan. In fact, term insurance is important for every age group.

Also, when going for life insurance, always choose a term plan which provides pure life insurance at a reasonable premium and avoid endowment or money back plans, which have a built-in guaranteed returns, and often limited life insurance coverage.