Do you really need a Life Insurance plan?

/ Life Insurance / Jun 3, 2022

Here’s the simple answer: if you have dependents, you MUST have life insurance.

The important part of our life is our family. And it is our duty to protect them for the foreseeable future especially when we’re not going to be present to earn or take care of them.

Death is a reality; no one can deny it. And that is precisely why life insurance is created. It’s essential that you get a policy at an easily stage of your life when you are healthy and the premiums are low. The premiums rise as you get older. Hence, it’s best to opt for a life insurance early so you can pay easily.

Many factors are involved in affecting the price of a life insurance policy. Some of these factors are simply based on your choice of lifestyle, while others may not be in your control. Let’s take a look at some of these key factors below.


The biggest influencer affecting your premium amount is your age.

Insurance companies may have their own criteria in deciding their life insurance premium amount, but age is always at the top. And it also makes sense because age is a constant factor that is applicable to all.

The younger you are, the lesser you pay. You will be surprised to see the drastic change in premium amounts as you get older and older. In addition to that, older people may also be asked to go for a medical exam to determine their actual level of fitness.


The gender of the person – another key factor in determining the premium amount.

It might be a controversial point but it is still valid with a very rational reason behind. Statistics has always pointed to the fact that women tend to have higher life expectancy than men.

Men typically have a high number of risk factors associated with their lives. Whether it’s their choice of lifestyle, or their choice of working in roles involving high risks, men tend to have a lot of stress as a part of their lives. The same could also be present in women, but the number is relatively low.

This is also backed by the fact that men don’t usually indulge in reliving all the stress by talking and sharing. Women, on the other hand, are attracted to a lot of social interaction.

All these factors may seem futile to an ordinary person, but to an insurance company, the difference matters, especially for Term Life Insurance.


It’s true that determining the actual time of death of an individual is impossible. The accurate estimation is done by insurers on the health of the person.

While determining the life insurance premium amount, the insurance company looks into the history of the individual’s health. They try to find out your present health conditions and any hereditary issues you can possibly have later on.

A hereditary history of health issues is a red flag that can have a massive impact on your premium.

The insurance company also looks into other factors like height, weight, blood pressure level, cholesterol level, etc. Some companies may offer you policies without any medical check-up but the premiums are always on the higher side.

Kind of Occupation

The kind of job also plays a key role in determining your premium amount because it can help to determine the level of risk you are exposed to.

Most office or home-based workers will have a good rating because of the low risk involved, but there are other high risk jobs involved. For example, a construction worker or an individual who is a racing car driver. Both of them work in high risk scenarios where the life is at stake.

High risk jobs call for higher insurance premiums.

Additional factors

Additional factors involve family history, financial status (any loan or bad credit history), smoking status, weight of a person, and more.

With all these factors keeping in mind, the best advice would be to go for a life insurance plan in Hamilton, Brampton, Toronto and Mississauga at the earliest possible time to get the maximum value for money. Talking to an experienced life insurance advisor can also help immensely in determining the life insurance coverage you need based on your requirements, budget, and lifestyle at no extra fees and obligation.