What you pay for term insurance is set when you take out the policy and depends on a number of factors. Naturally, the larger the sum you want to be insured for and the longer the length of time you want the policy to cover you for, the more expensive your premiums will be: lump-sum policies also tend to be more expensive than family income benefit policies. The other main factors which influence the cost of your premium are your age, sex and state of health.

Your age
The older you are when you take out a term insurance policy, the more it will cost for a given level of benefit. For a 20-year policy, a man of 29 might pay one-and-a-half times as much as a 19-year old male; at 49, the cost is almost two-and-a-half times that for a man aged 39.

Your sex
Term insurance policies are cheaper for women because women have a longer life expectancy than men. Typically, the cost for a woman is the same as for a man four years younger.

Your health
Premiums for life insurance are calculated on the assumption that you are in good health. If you have a medical condition, or a family history of one, your life insurance will cost more.