Why Your Life Insurance Premium Could Increase – And How To Avoid It

Life insurance is one of the most important investments that you’ll ever make for your loved ones. It’s the best way to ensure that your family has the money that they need, regardless of what happens to you. One of the most common reasons that people don’t buy life insurance is because they assume that it’s going to be too expensive, but in most cases, that couldn’t be further from the truth.

When applying for life insurance coverage, there are a number of different factors that could cause your premium to increase above that for an average applicant. In a typical life insurance situation, your age, your health, and your lifestyle are big determinants of how long you are likely to live – and when they are all combined, these criteria can help the life insurance company to predict whether it may need to pay out a death benefit claim while you are insured. It is recommended that purchasing life insurance at a younger age is to your advantage so that your premium rate is lower, though there are options out there for senior citizen life insurance coverage.

If you are in exceptionally good health, it is likely that you will not just qualify for coverage, but that you will be considered for the category of “preferred.” This means that you may be able to pay lower than average premium rates for your policy because you present a lower risk of a claim.

Conversely, those who are in poor health, as well as those who may work in dangerous occupations or participate in risky activities such as skydiving, present a higher than average likelihood of claims to the insurance company. Therefore, these individuals may end up paying higher premiums, or being denied for life insurance coverage altogether. This article on Forbes, highlights the circumstances in which life insurance premiums may cost more.  Those who are unable to qualify for insurance policy due to poor health condition may be good candidates for a no exam life insurance policy.

How to Reduce Your Risk Factors to the Insurance Company

While some high risk factors are unavoidable such as the contracting of certain diseases, others can be either avoided or managed, thus reducing your risk to the insurer and making your application for coverage more acceptable.

Here are some ways to do so:

  • Avoiding dangerous hobbies and activities. Although you may love the thrill of hang gliding, bungee jumping, or sky diving, these activities present tremendous risks to your well being and to your life. By avoiding these hobbies, you can greatly reduce your risk in the eyes of a potential life insurer.
  • Keeping your blood pressure down. If you have high blood pressure, it can lead to a whole host of other, more serious, health issues such as heart disease, stroke, and kidney problems. Any of these could be potential factors for a life insurer to deny you coverage. Controlling your blood pressure can be done by exercising regularly, eating a healthy diet, and getting enough sleep each night.
  • Maintaining a healthy weight. Today, it is estimated that roughly 30% of Americans are overweight. This is due in large part to the unhealthy diet that many people partake in regularly that consists of processed, greasy, fatty foods. High body weight is not just a problem in and of itself, but it can also lead to other serious health issues as well.
Most life insurers use height and weight tables to classify what a person’s average healthy height and weight should be. Being too far above these averages could cause you to pay a higher premium, or to be denied for coverage. By keeping your weight in check, however, you could qualify for coverage – and if you are considered to be in superior health, you may even be considered a “preferred” risk who pays a lower amount of premium than average.
  • Reducing stress. Even with all of the modern conveniences of today, people are under more stress than ever. This can also lead to serious health related conditions such as heart attack and stroke. By exercising and practicing relaxation exercises, it is possible to reduce stress, as well as the likelihood for short- and long-term health issues, which could in turn lead to an easier time qualifying for life insurance coverage.

Additional Ways To Get Affordable Life Insurance

We listed some of the best ways to get lower premiums, but those aren’t the only ways that you can save money on your insurance coverage. Making a few simple lifestyle changes could save you hundreds of dollars on your insurance coverage.

The best way to lower your premiums is to eliminate any tobacco that you currently use. If you’re listed as a smoker on your insurance application, you can expect to pay much more for your life insurance versus what a non-smoker is going to pay for the same amount of coverage. Smokers are a much higher risk to the insurance companies, which means that they are going to pay much more every month. In fact, smokers are going to pay twice as much versus what a non-tobacco user is going to pay for the same sized plan.

Every insurance company is different, and all of them are going to offer you different rates based on their medical underwriting and pricing categories. If you want to ensure that you’re getting the most affordable coverage, then you’ll need to get dozens of quotes before you decide which one is best for you. Because there are hundreds and hundreds of insurance companies on the market, you could spend weeks looking to get the best plan to meet your needs.

Instead of wasting your time calling all of those companies, let one of our independent insurance brokers do all of the work for you. We work with dozens and dozens of different companies across the nation, which means that we can bring all of the best insurance rates directly to you. Working with one of our independent agents could save you both time and money on your plan.

Our experienced agents have years of working with all kinds of applicants to help them save money on their insurance plan. It’s our mission to connect our customers with quality insurance policies at an affordable rate. We know that shopping for life insurance can be confusing and overwhelming, but it doesn’t have to be. We are here to make the process as quick and simple as possible.

The Bottom Line

Any time you are applying for life insurance coverage, it is important that you have a good understanding of your health history and medical conditions. Typically, a life insurance application will require information about any of your past or current health issues, as well as regarding any of the prescription medications that you take.

Depending on the amount of coverage you are applying for, you may also be required to submit medical records from your primary care physician, along with blood and urine samples in order to test for various health conditions. This will help the life insurance underwriters to get a clearer picture of the risk that they are taking on should they opt to provide you with the coverage you are applying for.

If you have been declined, or you get declined because of your health or any pre-existing conditions that you have, then a no medical exam option is an excellent way to get affordable coverage. No exam policies allow you to get insurance coverage without being required to undergo the medical exam before they accept your application.

These policies have several benefits, but they also have a couple of drawbacks that you should be aware of before you buy one. The most notable is that these policies are going to be more expensive than a traditional plan. If you’re looking for the most affordable form of coverage, then you’ll need to apply for a traditional plan that requires a medical exam.

Another disadvantage to these policies is that you may be limited on the amount of coverage that you can buy. Most insurance companies will only sell you around $250,000 worth of protection, which isn’t enough coverage for most families. If you need more than that, you can buy two no medical exam plans, or apply for a traditional policy.

You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the insurance protection that your family will need if something tragic were to happen to you. Nobody wants to think about his or her death, but it’s vital that you plan for the worst. If something tragic were to happen to you, and you didn’t have insurance coverage, then your loved ones would be left with a mountain of debt and no way to pay for all of those expenses. Life insurance will give them the money that they need to get through the difficult time without suffering and financial burdens.

About Jack D. Davis at InsuranceScored.com
About Jack D. Davis at InsuranceScored.com

Jack D DavisBorn and raised in a quiet suburb of Philadelphia, PA, the youngest of nine children, son of two wonderful parents, Jack developed his work ethic early on. While attending West Chester University, he volunteered to join the US Army Reserves for a six-year enlistment. Attending college during the day, working evenings, and fulfilling his military obligation on various weekends, Jack learned the value of hard work and time management. After graduating from college (BS in Business Management), he began working as a sales representative for a Fortune 100 company and honed his marketing skills. In 1985 Jack started his financial planning career as an agent with Mutual Benefit Life.  After Mutual Benefit Life ran into financial difficulties, Jack decided to “go it alone”. His company, “Eagles Soar Enterprises, LLC.” successfully grew for almost 30 years. Jack’s skill-set is understanding and recognizing the personal needs of families and business owners. His patience in explaining the numerous options available is greatly appreciated by his clients. Jack agrees that life insurance is a difficult topic and people are rarely “excited” about discussing the subject. When Jack was 23 he witnessed firsthand how important life insurance is when he lost his Dad to cancer. Jack’s Mom used the life insurance proceeds to help minimize the financial loss.  Jack recognizes how critically important proper insurance planning is to the surviving spouse, business partner and, most importantly, the children of his clients. In his free time Jack enjoys playing tennis, horseshoes, ping pong, exercising, reading and attending Philadelphia Eagles football games. Jack has two wonderful children and currently resides in beautiful St. Petersburg, FL. Questions? Call Jack at 1.800.277.3098 or email: info@jackddavis.com

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