Can I Lower My Life Insurance Premiums?

A life insurance policy can give you peace of mind knowing that your family will be provided for if anything should happen to you. Unfortunately, many people put off this critical task, in many cases due to concerns about cost. A major factor affecting your premiums is the rating the insurance company assigns you based on an assessment of your health and lifestyle. There are steps you can take to lower your premiums. How Are People Rated for Life Insurance Purposes? Insurance companies typically use certain risk categories, or rating classes, to determine life insurance premiums. In order of higher risk to lower risk, those ratings are:

• Standard
• Standard Plus
• Preferred
• Preferred Plus

How Can You Lower Your Life Insurance Premiums? A better rating means lower premiums. The following are some tips on how to reduce the cost of life insurance. Apply for a Policy As Soon As You Can The longer you wait, the older you will be, and the more likely it will be that you will have some type of health condition. Your premiums will only increase if you wait to apply. Insurance companies offer lower premiums to applicants who are younger and healthier. Our knowledgeable agency can help you find a life insurance policy to suit your needs at the best available rates. Maintain a Healthy Weight Being obese or overweight is linked with higher mortality rates and a higher risk of developing certain serious diseases and medical conditions. To determine whether you are a healthy weight, most insurance companies will use a standard table of height to weight. Maintaining a healthy weight over time can help you get life insurance for less. Do Not Smoke or Use Nicotine Products Smokers have a higher risk for a wide range of health issues, which is reflected in their life insurance premiums. If you are not a smoker, do not start. If you are a smoker, quit as soon as possible. The longer it has been since you last smoked or used tobacco, the better your rating for life insurance will be. For example, you may be assigned the worst rating (Standard) if you have not smoked in a year. If it has been five years, you may qualify for the best rating (Preferred Plus). Get Regular Medical Treatment for Existing Health Issues If you have high blood pressure, high cholesterol, asthma, or a similar chronic health condition, it does not necessarily mean that you will not qualify for a better rating. You may still qualify for lower life insurance premiums provided you follow your doctor’s advice, take your prescription medications as directed, and see your doctor regularly for your condition. Avoid Hazardous Hobbies Actively engaging in rock climbing, scuba diving, skydiving, hang gliding, skiing, white water rafting, hot air ballooning, or other high-risk activities can increase your life insurance premiums. If you are involved in a recreational activity that increases your risk of injury or death, be prepared to pay a little more for life insurance.Original Article