Life Insurance Premiums

Life is unpredictable, and you never know what could happen tomorrow, which is a scary thought if you’re not a single bachelor. When you think of your partner, children, or even your parents who may rely on you to care for them financially, having a life insurance policy is super important when your loved ones lose their primary breadwinner.

Although life insurance is a great benefit to have, it’s also another expense to add to your budget, so it always helps when you can find unique ways to save. Believe it or not, healthy lifestyles can help lower monthly premiums.

So, let’s look into what factors affect your life insurance policy rates and how improving your health may lead to a lower premium in the long run.

What affects life insurance premiums?

The cost of your life insurance policy is affected by several core factors, including:

  • Age
  • Sex at birth
  • Lifestyle (such as alcohol or tobacco use)
  • Pre-existing health conditions
  • Family history
  • Policy type
  • Amount of coverage
  • Length of term

Most of the above factors are beyond your control. For example, you obviously can’t change your age to lower your premium, nor can you wipe out your family’s medical history.

So, without compromising on terms and coverage, improving your health really is one of the only things you can do to lower your life insurance premiums.

Why improving your health may lower life insurance premiums

The role of life insurance is to provide financial support to your loved ones when you pass away. Like all other types of insurance, life insurance premiums increase when an individual is considered a higher risk. In other words, if the insurance company thinks you’re more likely to die, they will charge a higher premium.

For example, if you smoke and consume alcohol frequently, your life insurance company will consider you to have a riskier lifestyle than someone who doesn’t smoke or drink.

Similarly, if you have a concerning medical record, your insurance company will assume you’re more prone to getting sick and, thus, more likely to die of a disease.

Meanwhile, someone who exercises regularly and maintains a healthy diet probably doesn’t have to visit doctors as frequently and has a much better physical record.

People don’t buy life insurance mainly because of the high premium cost, and improving your health is one of the most effective methods to lower your life insurance premiums.

Healthy choices that help lower your premiums

No one is forcing you to go to the gym at 5:00 am every day or go on a fad diet. However, a few simple lifestyle changes will significantly improve your health.

For example,

  • Quit smoking.
  • Reduce alcohol consumption.
  • Stay on top of your annual physicals.
  • Maintain a healthy diet.
  • Include physical exercise in your schedule.
  • Keep your stress low.

Among these lifestyle changes, quitting smoking will have the biggest impact on your premium cost because you will significantly lower your risk of lung and bronchus cancer, which are responsible for the most deaths.

The other action items listed here will improve your health in the long term, leading to a lower life insurance premium than the quote you received before starting your health journey.

The Bottom Line

As people always say: it’s better to be safe than sorry; better sooner than later. If you want to protect your loved ones, you should start adjusting your lifestyle right away. Because the longer you wait, the older you get, and the higher your premium will be.

So, start investing in a healthier future and lower your life insurance premium along the way. Cut down on unhealthy habits, adjust your diet, and maybe grab a yoga mat. You’ve always wanted to improve your lifestyle, anyways. But now you have a financial reason to do so.

Source

https://seer.cancer.gov/statfacts/html/common.html