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Having in place adequate life insurance can ensure your loved ones are not financially burdened upon your death.
A payout could be used to cover the cost of your funeral, settle remaining debts in your name, and even provide your loved ones with an inheritance upon your departure.
However, in a society where living costs are ever-increasing, living on a budget makes it more difficult than ever to take on another outgoing.
Fortunately, the cost of life insurance is often estimated to cost 3 times more than it is, actually making it more affordable than you would think.
And what’s more important, you can actually reduce the amount you pay on a monthly basis just by living a healthy lifestyle, and here’s why…
Generally speaking, those who live a healthier lifestyle will pay less on a monthly basis for their life insurance as they pose less of a risk to the insurer.
Let’s take a look at the various aspects of healthy living and how they can affect the cost of your life insurance.
Smoking
It’s no big secret that smoking is seriously bad for your health.
1 in 2 smokers will die from a smoking-related disease with more than 480,000 deaths a year in the US caused by smoking alone.
Due to this shocking statistic, it is not surprising that the monthly life insurance premiums of a smoker are on average 50% higher than that of a non-smoker for the same level of cover, due to the increased risk they present to the insurer.
In the eyes of a life insurance company, you have deemed a smoker if you have smoked tobacco or used a nicotine replacement product within the past 12 months.
Quitting smoking is, therefore, the first step toward lowers monthly premiums.
BMI (Body Mass Index)
When taking out a life insurance policy, you will be asked to provide your current height and weight so that your BMI can be calculated.
Your BMI is a calculation to determine whether the ratio between your height and weight is healthy.
High BMI has been linked with many medical conditions including high blood pressure and high cholesterol.
Due to the increased risk of death associated with these diseases, those with an unhealthy BMI will be charged more on a monthly basis to mitigate the risk they pose to the insurer.
If you fall into this category, losing excess weight could not only increase your life expectancy and quality of life, but it could also save you money on your life insurance.
Hypokinetic disease
Also associated with an unhealthy BMI is the potential of hypokinetic diseases such as Diabetes Type 2, heart attack, and stroke.
These diseases are associated with a lack of activity and bring with them potentially fatal consequences.
As a result, suffers from these diseases are likely to be charged higher monthly premiums.
Once you have suffered one of these conditions, it is highly unlikely the damage can be undone, however, there are still ways to reduce the cost of your life insurance.
Proof of a change of lifestyle to counteract the condition is likely to be taken into account, for example, partaking in regular activity or losing weight to achieve a healthy BMI.
There are also life insurance companies who specialize in impaired life cases, such as suffers from these conditions, meaning that taking life insurance out with one of these companies could save you money.
Just be aware that most insurance companies are reluctant to pay out claims and will usually try to deny them. If you are facing a delayed life insurance claim, make sure you contact professionals who can review your case properly.
Equally, using a life insurance broker if you suffer from one of these conditions can easily allow you to compare numerous quotes and find the best solution for you at the most cost-effective price.
Usage-based insurance
Increasingly in the US, life insurers are rewarding their policyholders with lower premiums for providing evidence of living a healthy lifestyle.
For example, policyholders are required to wear fitness trackers and receive reduced premium rates when they reach certain activity goals.
Querying whether or not this is an option with regards to your specific insurer, could allow you to save money on your monthly premiums if you live a healthy lifestyle.
Changes in lifestyle
Even once your life insurance has been arranged, a change in your lifestyle for the better could result in reduced monthly premiums.
Be sure to report any positive changes to your lifestyle to your insurers to see whether or not you can be offered a lower monthly premium than you are currently paying.
Alternatively, shopping the market for a new policy may also identify a policy providing the same level of cover as your current policy but at a lower monthly premium due to your improved lifestyle.
It is important to be aware that all previous monies paid into your existing policy will be lost, but as long as the new policy cover is identical or more fitting to your current situation, you can be sure the move to a lower monthly premium will be of benefit.
Summary
- Life insurers charge higher monthly premiums to those with less healthy lifestyles to mitigate the risk they pose
- On average smokers pay 50% more than non-smokers for their life insurance premiums
- Losing weight to ensure you are of a healthy BMI can reduce your monthly premiums
- Even if you suffer from a hypokinetic disease such as diabetes type 2, it is possible to get affordable life insurance by providing evidence of a lifestyle change, using a specialist insurer and ensuring your shop the market for the most cost-effective solution
- Updating your current life insurer of positive lifestyle changes could result in a decrease in your monthly premiums
One lifestyle change can be simply through eating healthy foods or taking affordable supplements, check this page.
About The Author:
Gemma Holloway works for Reassured, the UK’s largest life insurance broker. Reassured compare life insurance quotes and offer an impaired life service to help protect those who may otherwise find it difficult to obtain life cover.
