How does your lifestyle influence life insurance premium rates?

Future is uncertain for everyone. You must save and build a corpus to help sail through uncertain and difficult times. This is why it is important to opt for financial planning and diversify your portfolio with various products such as fixed deposits, recurring deposits, life insurance, and mutual funds. Amongst the various products, life insurance is often touted as one of the most reliable and sought after financial planning solution opted by individuals for legacy planning and safeguarding their family’s future when they are not around. 

Now, when we are talking about life insurance, one must understand that it is a long-term commitment where over a period one must regularly pay life insurance premium to keep the policy in force.

The life insurance premium is derived after considering the required parameters.  But premium rates can go high, if one doesn’t have a good healthy lifestyle. Hence it is very important to make some small lifestyle changes in one’s day-to-day life. Read further to know more:

# 1: Physical health condition: 

Insurance companies place great emphasis on understanding the physical health condition of any applicant as it is a deciding factor for deriving the insurance premium rate. Any applicant who is tobacco smoker or an alcoholic or is already suffering from a pre-existing ailment like diabetes etc., would have to pay a higher premium rate. Some of the other details that insurance companies do want to know are whether the applicant has any pre-existing ailments, any history of deadly disease like cancer or in the family and so on. This is another major factor that helps to decide the amount of premium payable. Many companies insist that the applicant undergoes a series of medical tests before signing the contract with them. This is for the simple fact that existing ailments increase the chances of some medical emergency happening in future, and that is a higher risk for the company.

Along with physical health, mental stability is also considered one of the important parameters before accepting a life insurance proposal.  Applicants suffering from any kind of major mental ailments like a feeling of constant depression, anxiety disorders, trauma related disorders etc. can bring in a rise in the insurance premium.

#3: Professional details  

Another significant deciding factor for determining the premium amount is high risk professions. Professions like mining, fishing, security guard, deep sea diving, fire-fighting etc. involves a lot of stress and might have a negative impact on the applicant’s health. Such occupational roles include more risk hence the insurance premium is likely to be much higher than a regular office job

The above are a few ways in which your lifestyle affects your life insurance premium. Hence, it is essential to take good care of these pointers before buying life insurance plan.