What is Life Insurance Premiums?

Life insurance premiums is the price you pay on a regular basis for your life insurance coverage.

Usually, you have one of several premium payment options available - annually, semi-annual, quarterly or monthly.

The more frequent the premium payments, the higher your overall premiums due to fees for handling the payment processing.

The actual premium you are charged for your life insurance is determined by the risk you present to the insurer of a claim being paid on your policy in the near future. Your life expectancy determines the price you pay, in addition to, the type and amount of life insurance, and your health and gender.

Other personal risk factors impact the premium including your lifestyle, occupation, hobbies, driving record, height-to-weight ratio, etc.

The premium you are charged for life insurance is the rate times the amount of coverage. You are classified with a specific rate based on your life expectancy and risk factors. This rate is per $1,000 of life insurance coverage.

Here's how you can compare life insurance premiums from several insurance carriers.