What Determines the Life Insurance Rates of Toronto Policy Holders?

Life insurance is perhaps the best way to secure your family’s future should anything happen to you. If this is your first time getting one though, you’re probably wondering how much your premium will be. This article from Investopedia discusses the most common factors that affect insurance rates:


“Every customer that applies for insurance goes through the underwriting process. The underwriting process involves investigation into familial diseases, analysis of reports like medical information bureau and motor vehicle reports. After the information is gathered and analyzed, they are typically analyzed by a statistician, called actuaries, hired by the insurance companies. After analyzing the data, the actuary tries to predict how likely the insurance applicant will make a claim on their policy. The higher the probability of a claim, the higher the premiums usually are.”

Age and gender are two important factors taken into consideration by insurance companies when determining life insurance rates in Toronto and elsewhere.
Women typically pay less for life insurance than men do and of course, the older you are the more you will have to pay. During the underwriting process life insurance rates of Toronto applicants may also be affected by, a person’s profession, lifestyle choices like tobacco use, involvement in extreme sports like skydiving, family health history and overall health. The thing to remember is that these factors can contribute to mortality and the greater the risk for it, the higher your premium will be.

Fortunately, brokers like Insurance Advantage make shopping around for the best premium rates easier than ever. They have online tools that allow you to get life insurance quotes from Toronto’s leading insurers with the click of a mouse. With extensive industry knowledge and experience, you will find a policy that specifically suits your budget and lifestyle during each stage of your life.

(How is my Premium Calculated? investopedia.com)