There are several characteristics that are considered to define the price of life insurance.
The price of insurance varies according to the value of the insured capital that is intended to receive indemnity, the age of the insured, and the risk that it represents in view of the possibility of the risk covered by the policy. Healthy lifestyle habits, sports (provided they are not radical) or physical activities, the balance between weight and height, not being a smoker, and having a less stressful and less risky profession contribute positively to the price of insurance.
The cost of life insurance will also be higher or lower according to the amount of indemnity (insured capital) intended for the additional coverages you hire. In the natural process of life, the probability of death increases with increasing age, which increases the risk of indemnification for the insurer.
Thus, it is very common for the premium for plans structured by age or age group to be recalculated each year or each age group change. Another reason for the premium to rise is the increase in the value of the contracted insured capital.
It is noteworthy that in plans structured by age or age range, the increase in the amount of insured capital (indemnity) does not follow, in the same proportion of periodicity, the premium adjustment (insurance price).
However, premium and insured capital are updated each year, according to the inflation variation index that appears in the general conditions of the contracted insurance plan. In an individual policy, life insurance tends to cost more, due to the personalized coverage. The collective plan, on the other hand, is usually more affordable, as it dilutes the risk in a group of people.
The drawback is that the insured capital values may be lower and the coverages less comprehensive. This is because the definitions of values and coverage of the collective policy are previously negotiated by the representative of the company, institution, union, association, etc. and it is not always possible to establish different criteria per insured.