The factors used to determine life insurance premiums ultimately depend on the underwriting criteria adopted by the life assurance company concerned. Mortality rates, age, sex occupation and health of the applicant are possibly taken into consideration.

Many life insurers quote indicative insurance premiums in advertisements or on websites based upon whether the individual is a smoker or non smoker. This is because statistics prove that smokers are more likely to die over a period of 10 or 25 years than non smokers, and therefore the risk of insuring a smoker is higher.

During the insurance quotation phase, it is not unusual for applicants to complete a medical questionnaire and sign a declaration. It is at this stage that the life insurance company will either write to a Doctor, with your consent, for a medical report or seek further information. In some cases, certain pre-existing medical conditions that result in death during the term of the policy are excluded. Alternatively, the life insurer may cover the pre-existing medical condition for an additional insurance premium or decline cover altogether.

Some life insurance companies offer the option to waive monthly premiums in the event of accident, or, short or long term illness whilst continuing the cover for a small increase in the premium paid. This is an attractive protection option to those who may struggle to pay monthly premiums at a time when income could possibly fall.

Most UK life companies require monthly payment of insurance premiums which are usually collected from bank accounts in the form of direct debits or standing orders. Consider measures of protection so there are no missed payments to ensure continuation of life cover.