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If you have looked around for life insurance and have applied for term insurance quotes, you may have noticed that they may differ among the providers. So how do the providers reach their figures? Do they just make a haphazard guess and choose the first figure that comes into heads? Actually, they make the decision based on several different factors concerning you.

Factors that may contribute towards your quotes

Usually when applying for term life insurance you are given a general quote based on your age, sex and general health. However if you are interested in the quote, the insurance provider typically then goes into further detail and wants to know a great deal more about you, so they can charge your premiums based on how much of a 'risk' there is of you dying!

Here are some of the factors they may consider which typically counts towards your term insurance quotes:

• your family's health background may be considered as some illnesses and diseases are often hereditary and so you may be a bigger risk to the insurance provider. Such illnesses and diseases as heart attack, stroke, diabetes and asthma in the family may be of concern and may or may not sometimes increase the cost of your insurance premiums;

• if you are overweight or considered to be obese for your height then this may also mean your insurance premiums are higher. This is generally due to the fact that an unhealthy diet and lack of exercise typically puts you at a higher risk of developing heart disease;

• what you do for a living may be a consideration that determines how much you pay for your term insurance quotes. If you are a window cleaner and clean high-rise tower blocks from platforms, then you may be considered as being a bigger risk than if you have an office job;

• any sports that you take part in or hobbies which are seen to be extreme, may mean you pay more for your life insurance. If you like to go parachuting, snowboarding or skiing in your spare time you may pay more than someone whose hobby is chess or who reads in their spare time;

• generally if you smoke or drink your insurance premiums may be higher than someone who is teetotal. The insurance provider may ask you how much tobacco you smoke per week or how many units of alcohol you drink each week. Sometimes, the higher the amount, the more you pay in premiums. While these vices boost up your premiums, it is important not to lie on your insurance form. If for example you were to die due to lung cancer or liver disease and you smoked or drank excessively, but said that you did not on your original life insurance application, the provider may not pay out on your policy.

Any of the above may affect your term insurance quotes. Of course, the amount you choose to insure yourself for (the 'sum insured') is a big factor that determines the cost of the insurance. The more insurance you need, the more you pay in premiums. With this in mind you may want to consider this amount carefully to ensure that you do not over-insure (ie take out more insurance than you need) yet do not under-insure (ie not take out enough)!

By: Jason Hulott

Jason Hulott is Business Development Director at Term Life insurance Cover service.