Life Insurance Blog

With the recent global economic downturn, many people are trying to save as much money as they can in as many ways as possible. This applies to life insurance as well, traditionally 0an area where consumers often feel they have no other choice than to accept the premiums offered to them in order to provide adequate coverage for their families. There are ways to bring premiums down and save on a life insurance policy, however, and they are listed below.

• Lose weight. A buyer who weighs more than they should will always end up paying more for their life insurance policy. The reason for this is that life insurance companies view excessive weight as a risk to the policy holder’s health, increasing the chances that they will pass away before completing their policy. Many people believe that only weight levels that are close to or squarely in the middle of morbid obesity will affect policies significantly. Whilst it is true that someone who is in the range of being morbidly obese will pay a much greater premium than those who are in their proper weight range, it does not take much extra weight to raise a premium no matter who the person is. Even an additional 20-30 pounds can raise a premium, and an extra 30-50 will spike it significantly higher than if the person was within their correct range. Some buyers may baulk at the suggestion that they need to lose weight for a lower premium, but it cannot be avoided for the person who wishes to pinch as many pennies as possible.
• Lose the lifestyle. Smoking, heavy drinking and drug use will all contribute to a skyrocketing life insurance premium. The thought process behind this is the same as being overweight; a reckless lifestyle is going to up the odds of a premature death, which can cost the insurance company money. To offset this risk, life insurance firms raise the premiums. The thought of giving up a certain lifestyle may be difficult for many buyers to entertain but they simply will not be able to obtain a low premium and keep living life as they do. Furthermore, while many life insurance companies will not reduce rates all the way to normal levels until a certain amount of time has passed between the policy holder’s last year of smoking, heavy drinking or drug use, an immediate cessation of these activities will still chip away at the buyer’s premium for the time being. More than that, it puts them on the road to eventually saving as much as possible.
• Lose the job. Perhaps the most difficult piece of advice to follow is the suggestion to change jobs or switch careers if the buyer’s profession increases their chance of premature death. Mine workers, commercial fishermen, oil rig workers and similar dangerous occupations can raise the buyer’s premium in order to offset the heightened risk that they face on a daily basis. If a buyer’s specialisation and passion is in the field of work in which they are presently engaged, and they do not wish to change careers for a reduction in life insurance premiums than to give up their dream job, then they will have no other choice than to accept a more expensive monthly insurance payment. If, however, the job is merely a stop on the road to a safer career path, they should look into transitioning sooner rather than later.