If you’re in the market to buy a life insurance policy, there are a few things to keep in mind before you begin to shop around. There are certain factors that insurance companies take into account to determine the cost, some of which you can’t control, like gender or age. However, there are other factors that could push up the cost of life insurance which you can do something about. Following are some tips to help you avoid the most common scenarios that could easily increase your premium.
Quit smoking now, or it will drag you down
Though it’s not easy to quit smoking overnight, it’s highly recommended that you drop this habit as soon as possible. Smoking will most definitely push up the cost of life insurance. Keep in mind that most insurance companies don’t differentiate whether you smoke a pack a day or smoke occasionally – or even if you chew tobacco. They consider this a major risk and it will reflect in your premium.
Get up and shape up
For years, research studies have indicated that being overweight or obese puts you at an increased risk of several unfavorable health conditions, such as high cholesterol, diabetes, heart attacks and strokes. As you can imagine, any of these risky conditions will increase your premium. In certain cases, the insurance rates for obese people will be more than 50 percent the normal rate. So, if you have extra pounds you need to shed, consult with your doctor to begin a healthy diet and exercise plan right away.
Go dry if you tend to indulge in drinks
Another factor that insurance companies consider to be harmful to your health is excessive drinking. Be aware that some companies will increase your premium even if you’re not a drinker now, but used to be an alcoholic at some point. Remember that insurance companies will have access to your doctor and health records to uncover these risks.
Switch careers and hobbies
Although it may not be practical, you should at least consider changing jobs if you happen to be in a risky line of work, such as roofers, farmers, aircraft pilots or power line workers. Any job that involves high-risk situations will certainly push up the cost of life insurance. And though you may get an adrenaline rush from engaging in high-risk hobbies like skydiving, rock climbing, bungee jumping or other similar activities, there’s no doubt these will also get you a high insurance premium.
Take it easy behind the wheel
Another area of your life that life insurance companies will evaluate is your driving record. If you’ve been convicted of a DUI or have multiple speeding violations within the last five years, you’ll definitely be considered a risky driver, which in turn, will increase your premium. So, if you have a clean driving record, do your best to keep it that way.
When it comes to life insurance, you’ll want to make sure you’re doing everything you can to qualify for lower rates. Again, some factors are beyond your control, but there’s still plenty you can do to not push up the cost of life insurance. Now that you’re aware, get started on implementing these tips.
Do you plan on quitting a bad habit or changing from a high-risk job? Feel free to share your thoughts in the comments section below.