Every insurance company deals with a life insurance policy, it is advisable to go through every detail before buying it.  The life insurance premium will be decided according to the risk involved. In many cases, an insurer can reject the claim of the insured because of certain exclusions in life insurance.

Mentioned below are some conditions which increase life insurance premium:

1. Excessive Drinking and Smoking

As we all know excessive drinking and smoking habit is bad for health and will increase the risks of mortality. Before buying a life insurance plan, an insurer enquires about your drinking and smoking habits. An occasional smoker will end up paying more premium than a non-smoker.

“Smokers” are those who consume nicotine or tobacco in different forms. It can be either smoking a cigarette or chewing nicotine gums. If you end up selecting questions like ” have you consumed tobacco in the past x years?” then you will consider as a smoker irrespective of whether you are frequent or an occasional one. Further, the premium charged will be a lot higher for a smoker than compared to a non-smoker.

The reason being smokers have a low expectancy ratio as compared to non-smoker because they are more vulnerable to diseases like lung cancer, throat cancer, bronchitis, etc. This makes their lifespan much shorter than a non-smoker and the insurance company does not want to take such serious risk.

Plans like Bharati AXA have an offer premium for a smoker of Rs 5,328 and a non-smoker of Rs 3,077. Correspondingly Max Life Insurance also provides Rs 7,752 for a smoker and Rs 5,130 for a non- smoker. The plans will apply to people with drinking habits too. 

Furthermore, one should not lie about these habits to the company. This will result in losing the claim altogether. It is always advisable to pay a higher premium, avail the benefits, and stay secure and protected.

2. Occupational Risks and Hobbies 

If you are interested in hobbies like scuba diving, boxing, and skydiving that involve high-risk factors then, you might end up paying a high premium or no insurance coverage irrespective of how healthy you are. As the company considers them a high-risk investment.

If you are doing some occupations like aircraft pilot, truck driver, electric line supplier, farmer, etc that has high occupational risk or hazard then an insurance company will also hesitate to provide a life insurance policy. The higher the risk, the higher will be premium.  Insurance companies have a list of occupations and risk associated with them, and their premium rates accordingly.

Engaging in dangerous jobs and hobbies will amount to either high life insurance premium or no coverage.

3. Current Health State and Pre-Existing Conditions 

Before the policy issuance, an insurer will ask about your and family present health conditions.  As your health condition indicates the mortality risk involved. Diseases like diabetes and heart-related problems are at high risk as compared to a man with no diseases. The company will have a thorough analysis of all health problems and review all the possibilities of genetic diseases.

One has to undergo a mandatory medical test for an applicant who is above 45 years of age, or if he/she is asking for a high coverage policy. If anyone has pre-existing medical issues, then the life insurance premium will be higher in these cases. Once the price has been quoted no one can be charged an additional amount.

4. Longer Policy Tenure and High Sum Assured

The life insurance premium will be higher if you invest in a policy that has a long policy tenure and higher sum assured.  If a policy having 30 years term period that means the insurer is covering for a long period and similarly, high coverage means, company has to suffer a heavy loss, in case of your untimely demise. In case, the quoted life insurance premium is high, then one can either reduce policy tenure or sum assured.  Policies like ICICI Prudential’s Crisis protect against 35 diseases and the premium paid is not more than Rs 2500. Another policy like Bharati AXA’s Smart health covers 20 ailments whereas Aviva Health Secure provides cover for 12 ailments. While selecting an insured sum, always consider inflation.

5. Get Rid of Obesity 

“Obesity” is defined as an excessive body fat content in one’s body. Obesity is a serious problem faced by a large number of Indians. Body Mass Index(BMI) is calculated according to one’s body weight and height. If the BMI of an individual is higher then 30 or more it is considered as obesity and if between 25-29.5 it will be considered as overweight.

Obesity can lead to several diseases like heart stroke and diabetes. Furthermore, the life insurance premium will be higher if you are overweight or obese. Hence, try to maintain your weight to pay less premium.

6. Explore the Potential of Riders 

A policy with a premium waiver and critical illness comes at an additional cost. For example, in the policy offered by Max Insurance, a 30-year-old would need to pay Rs 6,375 as a premium for 75 lakh coverage. But if he buys a comprehensive accident benefit then he has to pay Rs 8,265 as a premium. So it is compulsory before opting for a life insurance policy, to carefully comprehend them and understand their points of considerations.

It is always advisable to go for a rider that provides comprehensive coverage than going for a policy that provides a standalone cover with the same benefits, at a higher premium rate.

One can add more value to their life insurance coverage by:

  • Adding accident, critical illness, and disability riders from an early age on.
  • Adding term insurance and critical illness riders with long-term plans and policies.
  • Taking waiver of premium rider for a child (for example) during one’s middle age.

7. Buying Online or Offline 

Policies that you purchase online are often cheaper than the offline policy. As it helps to save extra cost on the distribution and administration. This fair percentage of savings helps policyholders to pay the low life insurance premiums.


Hence, it is important to lead a healthy and risk-free life. After all, it affects your chances to reduce life insurance premiums.