The short answer to this question is the type of insurance you buy, your lifestyle habits, age, and your medical condition. Insurers also look at how high the risk is to insure you. In other words, what are the chances that you will die within a short period of time after being insured. There are several classifications for risk factors – preferred, standard, substandard, and uninsurable. Of course the ideal situation is for you to be in the preferred risk category. That is where you get the best rates. On the other end of the risk factor scale, there is uninsurable. Several factors can put you in this category, such as drug use in the past 3 years,
To be in the preferred risk category, you would be a non-smoker with normal blood pressure, cholesterol in the normal range, and no pre-existing conditions, such as asthma, heart conditions, organ transplant, HIV positive, etc. But some of these conditions may not be a factor if it has been over a specified period of time since the event occurred. For example, if you had a heart attack in the past 6 months, that could be an issue. But if it has been over a year or so, then it may not be a factor. It all depends on the insurer and the category they place you in depending on your risk factors.
Your rates also depend on the insurance company. One insurance company may rate you in the substandard category while another insurer may rank you in standard or even the preferred category.
Of course, there is a lot more to the story than what I mentioned in this short blog post, and I’ll be addressing a few of the points I mentioned here in more detail in upcoming posts.