There are several reasons 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. 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.
- 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 went 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.
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If you’re confused or want to save money, your next step should be calling one of our agents.