How Your Lifestyle can Affect Your Life Insurance Rates

  • Sep-05-2017
  • Richard Reich

For consumers who sincerely understand their need for life insurance but have rather risky lifestyles, they are likely to be surprised that what you do for fun can have a significant impact on how much you pay for life insurance.

Most people understand the ongoing relationship between insurance and risk. They understand that their ability to purchase affordable life insurance is substantially impacted by their age, health, and the curse of being a smoker, but they are genuinely amazed and surprised when they discover that sky-diving, scuba diving, and mountain climbing will give an underwriter a serious case of heartburn.

Healthy Lifestyle vs. Risky Activities

The folks over at Intelliquote have an interesting take on the relationship between a person’s lifestyle and their insurance rates:

While activities such as regular exercise are likely to boost your overall health because it improves HDL (good cholesterol), some physical activities are considered “risky” when it comes to buying a life insurance policy. If you’re an adventure-seeker and an adrenaline junkie, that’s all well and good. Just expect that you may pay a bit more for your insurance premiums if you’re a participant in these types of sports and hobbies. There is an extensive list of hobbies that insurance companies dislike, but if you like to rock climb, skydive, race (just about anything), hang glide, or scuba dive, expect your rates to go up no matter how healthy you are. 

Applicants should keep in mind that although activities they consider safe and routine because of the amount of time they’ve invested into it, the insurance underwriter may have a completely different take because they are aware of claims that have resulted from each particular activity. They are even likely to be considered HIGH-RISK by the insurer.

What is High-Risk Life Insurance?

When most people consider the term “High-Risk” and associate it with life insurance, their reasoning is typically related to age and health. However, there is considerable more to think about when it comes to high-risk life insurance. Trusted Choice, a marketing association makes it quite clear and to the point in their article about high-risk life insurance:

High-risk life insurance is life insurance coverage that is available for those who are considered a higher risk to insure than other people. What defines a risk category? There are several categories that are considered high risk. They include:

High-risk professions: Many occupations can put you into the higher risk category. People in high-risk professions include underwater welders, underground miners, and firefighters.

High-risk hobbies: You may work at a safe job during the week, but you may still be considered high risk if your weekends involve hobbies such as skydiving, scuba diving or racing cars.

High-risk habits: Some of your lifestyle habits might be high risk, such as smoking cigarettes or cigars, or chewing tobacco.

High-risk diseases: If you have been diagnosed with a serious or life threatening disease such as cancer, pancreatic disease, epilepsy, diabetes, or Alzheimer’s, you are most likely considered high risk. Read More…

So now that we understand the relationship between a risky lifestyle and life insurance, it’s logical that we discuss how we can mitigate the risk of being charged significantly more for doing what we love.

How Can We Minimize Our chances of Paying More?

Things have changed for the insurance shopper in the 21st Century. We can easily shop almost every retailer, service company, and insurer across the United States to determine who will charge the most reasonable price for the product or service you need.

We are now at an advantage because we can click instead of call or drive. Finding affordable life insurance when your passion is considered risky is now easier than ever. You simply need a little good advice about shopping,

FreeAdvice.com offers advice to consumers on insurance topics which include research tools and company reviews:

How To Find Affordable High-Risk Life Insurance

Whether you are applying to a company specializing in high-risk policies, or in any company advertising low-cost life insurance, be sure you are likely to be accepted at the affordable rates before you apply! A rejection on a life insurance application could come back to haunt you. Just applying to a company that claims to have the lowest price is usually NOT the answer. If that company does not accept you or rates your policy as non-standard, then it may harm you when you apply with another company. Other insurance companies will know if you have applied for life insurance, and each application is a red flag that can cause your premium rates to increase.

Before you apply for high-risk life insurance, speak with a good insurance agent or broker who specializes in dealing with people who have problems obtaining life insurance coverage. He or she should be able to recommend a company that has a favorable view of people with your health condition. Read More...

It’s All About The Agent

In conclusion, it’s extremely important to note that the agent you select can make a tremendous difference in the rate you pay for your life insurance. Independent agents will always serve you better than career or captured agents. Not necessarily because they work harder or know more about life insurance, it is because they are independent agents who represent multiple carriers and owe their allegiance only to their clients and prospective clients.

For more information about how your lifestyle can affect your life insurance rates, and to receive a free and confidential quote, contact the professionals at Life Insure at (866) 691-0100 during normal business hours, or contact us through our website at your convenience.

 

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