How Your Lifestyle can Affect Your Life Insurance Rates

May 16, 2018 | 6 months ago | Read Time: 3 minutes | By CA Sandeep Vinod Kanoi

For people who understand their requirement for a life insurance but follow risky lifestyles, they would be surprised to know that what they do for fun could significantly impact how much they pay for their life insurance.

Most people understand the ongoing relationship between insurance and risk. They understand that their ability to purchase affordable life insurance is substantially impacted by their age, health, and the curse of being a smoker, but they are genuinely amazed and surprised when they discover that sky-diving, scuba diving, and mountain climbing will give an underwriter a serious case of heartburn.

Your lifestyle choices have a bearing on how much you would pay for the life insurance. Life insurance providers decide whether they would approve your policy—and your premium amounts depending on various lifestyle and health factors. Medical conditions, hobbies, habits, and jobs can make you a higher risk prospect which could cost you.

While you may not have total control over everything that the life insurance companies consider while reviewing the application, you could still do a few things for improving your chances of a better rating and benefiting from a lower term life premium.

As an applicant, you must keep in mind that activities which you consider routine and safe, the insurance company might have an entirely different take as they’re aware of the claims which have resulted from each of such activities. They might also be considered as High-Risk by an insurer. Some of these activities are mentioned below:

  • Risky professions: Some of the occupations could put you in a higher risk bucket. People in risky professions include underground miners, firefighters, and underwater welders.
  • Hobbies: You might have a safe job, but you might still be considered as high risk in case you involve in hobbies like scuba diving, racing cars, skydiving, etc.
  • Smoking: In case you smoke, you risk yourself with a number of health-related issues. It makes you a higher risk to the insurance companies and consequently, you would have to pay high premiums for your life insurance policy.
  • Heavy drinking: In case you consume alcohol regularly, you risk yourself with alcohol-related health issues, like liver problems, that can allow life insurance companies to consider you as high risk. Drinking heavily could, therefore, increase the cost of your life insurance.
  • Driving: In case you have a bad driving record, you might find it difficult to your life insurance policy approved or you might have to pay higher premiums. Accidents, traffic violations, where you were at the fault will also cost you in form of higher premiums for your life insurance.
  • Health: An inactive lifestyle could put your health at the risk of medical conditions which would work against you when you apply for a life insurance. In case the paramedical exam which is required by an insurance company indicates that you have high blood pressure, overweight or have high cholesterol level, it might incline the insurer in putting you in the high-risk bucket and charging you more premiums on your life insurance policy.

There are several lifestyle changes which you could make to improve your well-being and also reduce the premium of your life insurance policy. Incorporating lifestyle changes could take time, particularly in case you developed bad habits with respect to your lifestyle. Making minor changes over time could prove to be very helpful to your health as well as your pocket.

So now that you have understood the relationship between your life insurance and your lifestyle, it’s rational that you take active steps to mitigate the risk of paying higher premiums on your life insurance policies. Although most of the people believe that they are at the mercy of life insurance companies, you could make right decisions and take actions for improving your chances of life insurance policy at a better rate.


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