Life insurance can give you peace of mind knowing that your family will be provided for should something happen to you. Unfortunately, many people put off this critical task, in many cases due to concerns about cost. An important factor that affects your premiums is the rating the insurance company gives 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. For higher risk to lower risk, these ratings are:
- Standard
- Standard Plus
- The lecture
- 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 insurance as soon as you can
The longer you wait, the older you get, and the more likely you are to 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 life insurance that suits your needs at the best available rates.
Maintain a healthy weight
Being fat or overweight is linked to higher mortality and a higher risk of developing certain serious diseases and medical conditions. To determine if you are a healthy weight, most insurance companies will use a standard height-to-weight chart. 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 of a wide range of health problems, which is reflected in their life insurance premiums. If you̵
7;re not a smoker, don’t start. If you are a smoker, quit as soon as possible. The longer it’s been since you last smoked or used tobacco, the better your life insurance rating will be. For example, you can get the worst rating (Standard) if you haven’t smoked for a year. If it has been five years, you can qualify for the best rating (Preferred Plus).Get regular medical treatment for existing health problems
If you have high blood pressure, high cholesterol, asthma, or similar chronic health conditions, that doesn’t necessarily mean you won’t 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 dangerous hobbies
Actively engaging in rock climbing, scuba diving, skydiving, hang gliding, skiing, 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.
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