Even if you are young and perfectly healthy, life insurance is still something you should consider purchasing. If something happens to you, your family will at least be protected financially. A decent life insurance policy should cover funeral costs and living expenses for your loved one. Knowing that your family members are protected will help you rest easier at night. However, to keep the costs affordable, it is very important to know what can make your premiums more expensive. Here are six factors that affect life insurance premiums:
It is common knowledge that smoking can lead to may life-threatening diseases, including cancer and heart disease. That is why insurance companies tend to charge smokers higher life insurance premiums than non-smokers. According to the Law Dictionary, some insurance companies even test their policy holders to find out if they are actually using tobacco or not. If your insurance company wants you to take a test, they will most likely ask you for a urine or saliva sample. If you are a smoker, quitting the habit can make a big difference on your life insurance premiums.
Skydiving or mountain climbing may give you a thrill, but they could increase your life insurance rates. According to Investopedia, many life insurance companies charge higher premiums to those that regularly engage in dangerous activities, such as scuba diving and car racing, because they are at a higher risk of getting into accidents. If you are a thrill seeker, understand that your life insurance premiums will probably cost more.
Being overweight or obese can make your life insurance premiums more expensive. Carrying extra weight can put you at risk of developing many different diseases, including high blood pressure, heart disease and diabetes, so insurance companies want to be careful. To lower your premiums, take steps to lose the excess weight you are carrying. Eat more nutritious foods, such as vegetables, fruits and whole grains, and exercise five days a week to get healthy.
As unfair as it may sound, your occupation could affect your life insurance rates. Some occupations, such as iron workers and truck drivers, are considered more dangerous by insurance companies. If you have a higher risk of getting hurt on the job, your insurance company may charge you higher life insurance premiums to protect themselves.
If you have several speeding tickets on your driving record, you do not just have to worry about high car insurance rates. A bad driving record can also send your life insurance premiums through the roof. A life insurance company may believe someone with a poor driving record is more likely to die in a car accident. Taking a defensive driving course could improve your driving skills and reduce points on your driving record.
Drinking socially is usually not a concern for most life insurance companies, but heavy alcohol use can have an effect on your life insurance premiums. If you typically consume several alcoholic beverages a day, it can take its toll on your health eventually. Many insurance companies require their customers to take medical tests, so not mentioning your daily alcohol habit will not work. Cutting back on alcohol will have positive effects on both your health and wallet.
As you can see, there are many things that can affect the price of life insurance. If you have unhealthy habits or do risky things, you are more likely to be charged higher life insurance premiums. If your life insurance premiums are currently too expensive, ask your insurance agent about what you can do to lower them. For more information, contact a local agency like Matt Roenker Insurance Agency.