You are at : aph home : life insurance : how lifestyle affects life insurance
 |
Did you know that your hobbies, favorite sport, career and health have a direct impact on your insurance premiums? Which means, that if you are a smoker or if your job entails frequent flying, your insurance premium will be much higher. |
Why? Well, in both these cases, your insurance company slots you in the ‘High Risk’ category. For insurance companies, people who are considered having a greater risk of early death are high-risk people. The insurance premium you pay therefore depends on the category your insurance company slots you in, based on your lifestyle and interests. Those in the ‘High risk’ group pay more premiums, as compared to the ‘preferred’ group.
Insurance companies look into every aspect of your lifestyle. Your hobbies and health are all important indicators of your life risks. That implies that although you exercise regularly, eat right and never smoke, but rock climbing is an activity you can’t do without, you are a ‘high risk’ person to insurers. Now, to save money, don’t consider hiding these facts as, if you happen to die in an accident related to the sport, you might not be paid any benefit. Equally important to insurance companies is your health record. Factors such as age, Blood Pressure and cholesterol can also affect your premiums! Keep your medical records good, to lower both your health insurance expenses and life insurance premiums.
Insurance companies also look into your mental and family history, driving record and credit status. If you suffer from depression, have a bad driving record or have a family history of any ailment, you are again grouped as ‘high risk’. Insurers also worry that people with bad credit or a bankruptcy in their past might not pay their insurance premiums. Hence, keep a good credit history. Similarly, if you regularly visit places considered dangerous (such as a wildlife photographer visiting forests) or have interaction with people suffering from major ailments, you are considered a much greater risk. In all of these cases, you pay higher insurance premiums.
The good news, however, is that what is considered risky can vary from company to company. In an effort to be competitive, companies will also change their criteria from year to year. Hence although, you are a bungee jumper, but are blessed with good health, you may find an insurance company that gives you affordable quotes. Survey various companies to get the best rates. Online surveys are easier and save your time. But, take care to thoroughly understand what the company is covering you for. Now, you know how it pays to clean up your driving record, credit history and health issues. Make positive changes in your lifestyle and pay lower insurance premiums! | 
