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

There are several reasons your life insurance premium increases.

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 benefits 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.

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.

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Therefore, these individuals may end up paying higher premiums or being denied life insurance coverage altogether.

Those who are unable to qualify for an insurance policy due to poor health conditions 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. Usually, this is because of 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. One important factor is every carrier uses a different system for determining “healthy weight” – some companies are more liberal than others.
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.

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 your rates have gone up, and you’re not sure why, or you’re looking for a cheaper option, let us know. We can help you understand the changes and find a cheaper option.

You shouldn’t have to pay a ton for your policy. Let us find your savings on your insurance policy.

If you’re confused or want to save money, your next step should be calling one of our agents.

About InsuranceScored.com
About InsuranceScored.com

Susan Wright, CLU, ChFC, RHU, REBC, ADPA, CITRMS, CIPA has been in the insurance and financial field for over 27 years. Even with years of experience, she continues to create new resources for others. Everything from books to training material.

Susan received her MBA from St. Louis University and her BA from Michigan State University.

She has worked in several areas but excels in writing material for both finances and insurance. Her goal is to give professionals credibility and assist in streamlining the sales process.

She has written countless articles for a variety of websites.

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