Health insurance - If you've ever taken out insurance before, you'll know that insurance premiums differ for every person. Insurance premiums are periodic amounts paid by you to the insurer to maintain the policy. As in any type of insurance, for a life insurance policy insurers will tend to look at a variety of factors to determine the risk profile of a person. Here are the major issues that insurers will look at in determining your premium for a life insurance policy.

1. Age

Health insurance - According to the Australian Institute of Health and Welfare, Australia has some of the best life expectancies for both men and women in the world, with 79 being the age for men (4th highest in the world), and 84 for women (3rd highest in the world). Age is one of the most important factors in determining your insurance premium. The older the applicant, the higher the premium as there is a much higher likelihood with older persons, that the policy will be claimed sooner rather than later.

2. Gender

Women tend to live longer than men, and this is true for most countries around the world. The gender of the applicant will tend to affect life insurance premiums with a bias toward women for more favourable rates, all other things being equal. It's interesting to note that in contrast, premiums for income protection insurance and trauma insurance tend to be higher for women, as statistically, women are more likely than men to claim under these types of policies.

3. Lifestyle

Insurers will look at your lifestyle for higher risk factors, such as smoking and drinking, which may adversely affect your health and thus attract a higher premium. Whether you have any dangerous hobbies or are exposed to risks to health or physical harm in your workplace are also factors that will affect your premium. If you work on a construction site or are in specialist and more dangerous niche occupations, such as deep sea fishing and fire fighting, you're also more likely to attract a higher premium than someone who routinely works in an office as you would be much more likely to claim on your policy.

4. Medical Issues and General Health

Insurers will require you to undergo a health examination if you're applying for life insurance. In addition to check for general health issues by taking blood and urine samples, checking weight and blood pressure, examining doctors may also ask for X-rays and ultrasounds for a more comprehensive medical report. These exams will scan for serious diseases and conditions such as HIV, high cholesterol, and diabetes, and any evidence of nicotine in the blood or drug dependence.

If you have a family history of diabetes, heart disease, diabetes or other medical conditions, the insurer may also take this into account. Insurers will weigh up your general state of health and risk factor and make an assessment for a premium based on the likelihood that you will make a claim.

5. Amount of Cover Sought

Your insurer will also take how much cover you're seeking into account. The higher the cover sought, the higher the premium will tend to be.