It will help if you put into context how long your beneficiaries would need financial support. This depends on several factors such as age, if there are any special conditions, the type of coverage plan and amount on your life insurance. If someone is disabled or has other special needs, they may need lifelong support.

You should be knowledgeable about the two types of life insurance coverage: term and permanent. Term life insurance guarantees a certain level of premiums for a fixed period, usually 10, 20, or 30 years. On the other hand, permanent life insurance has no end date. On the other hand, permanent life insurance plans are designed to provide coverage for your entire life, as long as premiums are paid.

You would also need to consider how much life insurance coverage you want. People want to make sure that their loved ones are adequately taken care of when they pass away. This depends on the size of their pay-outs. One way to estimate this is by subtracting your assets from your long-term financial obligations.

This may be perhaps the most important question you would have to consider because this is the purpose of taking out a life insurance policy in the first place. You would want to know how easy it would be for beneficiaries to receive the money after you are gone. The way you structure your death benefit ultimately depends on your family and your goals. You can structure a lump-sum pay-out, or have it issued in monthly payments. Perhaps, you can instruct that the pay-out be made to an individual retirement account (IRA), to provide savings for your spouse’s retirement. It all depends on the individual’s situation and the goals you intend to achieve. 

You would want to know if your premiums would change or increase over time, or how easy it would be to do so. This typically on the type of life insurance coverage you have. If you have a term life coverage, your premiums stay fixed for the initial 10, 20 or 30 years, after which your premiums will likely go up. On the other hand, a whole life insurance coverage guarantees a fixed premium as long as you don’t let your policy lapse, your premium is guaranteed not to increase for the rest of the insured’s life.

People in good healthy condition pay less than those who have health complications such as diabetes or high blood pressure. Poor health raises your risk, which in turn affects how the insurance company prices your premium. Risk factors may include family history, medical history or bodyweight, history. 

Smokers are considered high risk and usually pay more than non-smokers. smoking significantly increases your premiums, sometimes as much as 50%, though some state laws are against surcharging smokers

Since we spend most of our life at work, it defines our lives and the types of risk we are exposed to, which directly impacts your life insurance premiums. People in dangerous occupations such as coal mining, manual labourers, security personnel or manual labourers are exposed to more risk than the average citizen with low-risk jobs such as teaching or working in an office. As such, they would more likely pay more for a life insurance policy. If you also engage in dangerous hobbies such as rope walking, mountain climbing, skydiving or extreme sports, expect to pay a higher life insurance premium. 

Women, on average, live longer than men by six to eight years. This is due to behavioural differences between both sexes. As a result, life insurance premiums for women are usually priced lower than those for men.

The more coverage and length you seek, the higher your life insurance premium.