Choosing to live a healthy lifestyle could reduce your insurance premiums.
Life insurance premiums are calculated based on your risk of dying, because the insurer only has to pay out then - so the more likely you are to die, the more expensive your premiums will be.
Life insurance providers look at your risk profile when considering whether to offer cover and how much to charge. Some risk factors are unchangeable, such as your age and certain medical conditions.
Other risk factors are down entirely or partially to choices you make, such as smoking, or enjoying a risky hobby like rock climbing.
Some insurers will also take your weight into account, regardless of whether it’s due to a medical condition or not.
Making lifestyle choices that protect your health can bring down the cost of life insurance premiums. Changing your lifestyle may even mean you can buy life insurance from a provider that’s refused you cover before.
Insurers look at risk factors including your:
Dangerous hobbies such as scuba diving, rock climbing or motor racing will impact your life insurance premiums
According to Cancer Research UK, smoking causes around seven in 10 cases of lung cancer in the UK, which is the most common cause of cancer death
Excessive drinking puts you at higher risk of health problems - there is no “safe” drinking level , but the NHS says that regularly having more than 14 units a week can damage your health.
If you’re convicted of a driving offence or given penalty points on your licence, this indicates that you take unnecessary risks as a driver.
Key health indicators such as weight, activity levels, blood pressure and cholesterol are taken into account when considering your risk.
There are factors you can’t change. Things like your age, pre-existing medical conditions and family medical history. Certain conditions such as cancer, stroke, heart disease and diabetes can be hereditary, meaning you’re more likely to develop the condition if a close relative had it.
These unchangeable factors combine with your lifestyle-based risk factors to give a full picture of your likelihood of dying during the life insurance cover period.
It’s important to be honest on your life insurance forms. Leaving out key information could leave you with insurance that either doesn’t pay out or pays out much less in the event of your death.
Reducing the cost of life insurance premiums is just one more reason why making healthy choices is a good idea. If you can, choosing to lose weight, stop smoking, drink less and take more exercise could make you feel better and live longer, as well as saving you money on life insurance.
Even small changes can have a real impact on the cost of your life insurance. If changing lots of habits at once seems too much, just pick one area where you want to improve your health and focus on that. Don’t forget to tell your insurer about the change and ask if your premiums will reduce as a result.
Your death isn’t the only event that could cause financial hardship for your loved ones - a critical illness that leaves you unable to earn a living can also be devastating. Critical illness cover provides support if you’re diagnosed with one of a set list of conditions.
Critical illness cover is usually sold along with life insurance, so think about whether you want to bolt on this type of cover when you buy a life insurance policy.