When it comes to life insurance, how you live your life matters. Your lifestyle is a determinant in the acceptance of your application for insurance coverage and can largely affect the monthly premiums that you have to pay on your policy.
Insurance companies have established a number of categories for the different lifestyles. Your eligibility for a life insurance depends on the category your lifestyle falls under. Your premiums are also computed based on the classification of your lifestyle.
Primary factors: Age and medical history
There are two primary factors that affect your life insurance premium: your age and medical history. Older people have to pay higher premiums and this is a given. You cannot do anything to sway this factor in your favor. The most that you can do is to get insured while you’re still young to avail of the low premiums.
The medical history of your parents and siblings will also be taken into account when computing for your premiums. Any history of diabetes, cancer or heart condition can pull up the premium that you have to pay.
However, if your own medical tests show you have excellent health, your premium may not be so affected by your family history.
Thus, make sure to disclose all related information in your medical history to the insurance company. Any attempt to hide a pertinent detail will be ground for the cancellation of your policy.
Bad habits and unhealthy lifestyles
Insurance companies charge higher premiums from smokers. Since smoking has long been acknowledged to be a health risk, one of the first questions asked of those applying for insurance coverage is if they smoke. Therefore, if you would rather pay lower monthly premiums, you should stop the habit.
Similarly, excessive drinking can cost you in terms of increased monthly premiums. Although insurance companies will not immediately know of your penchant for alcohol, the results of your medical examination (required) could reveal your excessive consumption of alcohol. Steer clear of the bottle if you want to save on your insurance premium expense.
"Risky" hobbies and occupations
Even the nature of your work and what you enjoy doing for recreation and as hobbies are factored in when determining your premium rates.
Specific jobs are categorized by insurance companies according to the risks involved. Your hobbies and favorite pastimes are treated in the same manner.
Generally, premiums are higher for people holding jobs that are classified as hazardous. Even then, there are different categories of hazards that insurance companies follow when determining the premium rates. If your current work falls under those categories, you should be prepared to pay the higher premiums.
Activities that are typically considered dangerous - such as sky diving and mountain climbing - can also command higher premiums from the policy holder.
If your priority is saving on premiums rather than doing what you really enjoy, then you should consider taking up recreations, like playing golf, that are considered less risky.
Other factors that can affect life insurance premiums
There are insurance companies that also factor in the prospective policy holder's driving history. Past DUI records, speeding citations and other reports of reckless driving can contribute to an increase in premium payments.
Drive carefully to avoid unwanted reports in your driving record. Your reward could be a lower life insurance premium and, of course, your safety.
