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Your Lifestyle plays a major role in your Life Insurance Premiums. How? Although you exercise regularly, eat right and never smoke you could still be in danger of being a "high risk" to insurers. You might not realize, but if you're a frequent flyer or avid adventure sports person who spends a lot of time sky diving, you are at the risk of paying a very high rate when you buy your life insurance. So your lifestyle could actually raise the expenditures of your life insurance policy. To understand why, you need to figure out how term-life policies are priced.
Life insurance companies study risks by dividing people into groups of smokers and nonsmokers. Some companies consider a person who uses any form of tobacco to be a smoker. These two groups are further broken down into one of three risk categories: Preferred Plus, Preferred or Standard. People who are considered with a greater risk of early death are under even lower classifications by life insurance companies..
Your Mental Health, Driving Record and Family History
You probably have never thought of it but insurance companies also consider mental health a big part of physical health. So all those consuming antidepressants and Prozac should worry about how much this would cost you. Depressed people are more likely to be suicidal and therefore a high risk to life insurance companies. Most policies are required to make payments two years after someone commits suicide. Luckily, not all depression is viewed as a risk factor.
A person's driving record not only affects his/her auto-insurance rates but also affects life-insurance rates. Most people are not aware that life insurance companies review your driving records too so if you've got even a speeding tickets or been caught speeding twice in five years, you will be considered a habitually risky driver.
Believe it or not but Life insurance companies also inquire about your hobbies as many hobbies could pose a risk to your life. Be prepared for questions from your life insurance agent on whether you're into bike racing or the like. Adventure or extreme sports such as mountain climbing, scuba diving, and helicopter skiing are likely to lead you to write a bigger checks to your insurer.
Be Careful…
It might seem easy to get away with not disclosing your dangerous hobbies or family health history on your life insurance application but you only end up being the loser. For if happen to die in an accident related to the sport, and the company discovers that you participated in this avocation before you signed the paper work; it won't pay your benefit. So make sure you don't o give them a reason not to pay the insurance claim. But don't be discouraged as you can always apply for a new life insurance policy.
So make sure you clean up your driving record, and be your health in good form to get a lower insurance premium from your insurance company .
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