Having a healthy lifestyle can help you to live a longer and happier life. But did you know that it can also affect the cost of your life insurance? The cost of life insurance is determined by a number of factors related to the individual looking to be insured. In particular, your age, health and lifestyle. If you’re looking to save money on your life insurance, having a healthy lifestyle can help.
Measuring the risk
Life insurance companies are businesses at the end of the day. Therefore, they base the cost of life insurance on the level of risk that you pose. For example, if you were to suffer from a serious illness, the risk is higher. You have a higher chance of passing away, than someone who didn’t have an illness. As a result, the cost of life insurance for the same amount of cover would differ.
What is considered as a risk for life insurance?
When weighing up the risk to determine the cost of life insurance for an individual life insurance companies will look at a number of factors.
- Your age. Unfortunately, the older you are, the more risk you pose for the life insurance company. Therefore, as you get older each year, the likelihood that you’re paying more for your life insurance premiums will increase.
- Your BMI. If you have a BMI that sits within the overweight or obese range, you are more at risk for health issues such as a heart attack or stroke. Therefore, you become a greater risk, so the cost of life insurance premiums will go up.
- If you’re a smoker. Even if you’re a social smoker, your life insurance premiums increase. The number of health-related problems that are linked to smoking makes individuals a higher risk to insurance firms. A smoker can pay up to three times more for their life insurance.
- Family and medical history. When your risk of getting a health-related condition increases, so does the cost of life insurance. Even if you are more at risk because of a genetic condition, it can warrant an increase in price.
- Whilst it sounds a little far-fetched having an extreme sport such as skydiving, vehicle racing or hang gliding for a regular hobby can affect the cost of your life insurance.
- Whilst there are plenty of businesses that don’t affect the cost of your life insurance, having a manual job that could put you at a higher risk can increase your life insurance premiums.
How to save money on your life insurance
Unfortunately, there are something things that you cannot change in life which may affect the cost of your life insurance. However, there are some things that you can do that can help to save you money. By living a healthy lifestyle including not smoking, getting regular exercise and eating right can help to avoid the rising cost of your premiums.
It can also be important to compare premiums with different companies. Using an insurance broker or adviser can help take the hassle out of searching around. It can enable you to compare life insurance quotes for the same or similar policies to find one that fits within your budget.
What’s more, getting regular health checks from your GP can also speed up the process if your life insurance company requires a medical history. Even in the case of having an illness, if it’s managed then it can go in your favour when it comes to the price of your life insurance.
If you know that you need life insurance, it’s always best to get it sooner rather than later. This is because age can affect your premiums, in addition to the increased risk of health conditions as you get older. If you think you need life insurance, you can compare prices easily, but be aware that you’ll need to speak to an advisor to get an accurate quote.