Here’s How Your Lifestyle Choices Affect Life Insurance Rates

Are you overweight or obese? Do you smoke or drink alcohol? If so, your life insurance rates may be much higher than if you are a healthy person. These are just some of the factors that can impact how much you pay for coverage.

While there is no guarantee that life insurance companies will not charge more for a policy for people with certain lifestyle choices, maintaining good health and avoiding risky behaviors can go a long way in reducing your premiums.

In this guide, we take a look at six lifestyle-related factors that determine how much you pay for life plans. Let’s dive in!

Your smoking and drinking habits

Smoking is one of the leading causes of preventable deaths all over the world, and it’s also known to increase your chances of developing cancer, heart disease, and other serious health conditions. Smoking also increases your risk of having a baby with birth defects, and it can seriously impact your health even long after you quit smoking.

On the other hand, drinking alcohol is also associated with a variety of health risks. For starters, it can increase your risk of developing heart disease or stroke, Tourette’s syndrome, liver cirrhosis, pancreatitis, and many other illnesses.

Alcohol also alters the way the body processes food and can lead to weight gain – both good reasons to limit your intake if you’re trying to maintain a healthy weight.

If you smoke or drink heavily, we recommend talking to a life insurance agent like Caspian Insurance for advice on how you can lower your rates.

You may be able to reduce your premiums by limiting your tobacco and alcohol use, getting involved in healthy lifestyle habits such as exercise and eating a balanced diet, or undergoing medical treatment for your health concerns.

Your career

Life insurance rates for people in certain professions will vary more than others due to the risks associated with each profession.

Occupations that are considered high-risk – such as law enforcement or firefighting – are typically associated with higher life insurance premiums. On the other hand, professions like nursing or healthcare administration typically have lower rates because these jobs don’t involve as much risk to your health.

Your hobbies

Hobbies can have a big impact on life insurance rates. If you like to golf, for example, your rates may be higher than if you’re more of a football fan.

Similarly, if you have a lot of hobbies that involve outdoor activities like hiking or fishing, your rates may be higher than someone who prefers indoor hobbies like sewing or painting.

Different companies have different policies about how much they’ll adjust their rates based on your hobbies. So it’s important to get quotes from at least a few different companies to get the best deal.

Financial history

Your current income and assets will affect how much coverage you are eligible for and how much you may be able to pay for premiums each month. Furthermore, if you have a history of high-risk activities or debts, your rates may be higher than someone who lives a more financially stable lifestyle.

Most life insurance companies will penalize customers who have filed for bankruptcy in the past by setting their rates at a much higher percentage than those who have not. If this is something you’re concerned about, it’s important to speak with an insurance agent about your specific situation.

Your criminal record

Most life insurance companies consider a person’s criminal record when setting rates. This includes any felony convictions, as well as any arrests that resulted in minor charges or no conviction. A criminal record can dramatically increase the cost of life insurance.

Generally, a conviction for a felony will increase your rates by anywhere from 50% to 100%. A charge that results in a misdemeanor will usually result in a 10% to 25% increase in rates, while an arrest with no resulting conviction may result in no change at all.

Obviously, avoiding criminal activity and getting good credit ratings will help keep your rates low. However, it’s still important to disclose any legal issues when applying for life insurance. This way you can get a fair rate based on your individual risk profile.

Conclusion

Lifestyle choices are one of the key factors that life insurance companies factor into your rate. The more healthy habits you have, the lower your life insurance rates will be. On the other hand, if you smoke, drink excessively or abuse drugs, your rates will go up.

If you want to save money on your policy, make sure to ask your agent about these kinds of changes and see if there are ways to lower the cost of coverage.

Changes like a divorce, the loss of a job or a large investment can all trigger changes in your personal finances that can affect life insurance rates.