The monthly cost of insurance can be tough on your wallet. It’s to be expected that the state of health you’re in will determine your health insurance premium, but did you know that some of these factors can also affect the premium you pay for life insurance? Factors such as smoking and obesity can play a role in the price you pay for your life policy.
Why do these factors affect your life policy? While an insurance provider calculates your premium, the risk of you dying before your policy is paid off must be determined. Smoking and obesity can have some nasty, life-threatening effects on your lifespan. It’s a simple matter of risk assessment.
Though some people try to argue that smokers under the age of 40 pose no greater a risk of dying than non-smokers, this point is not recognized by insurance companies (and many medical professionals). Insurance spokespeople have confirmed that health risks associated with smoking can have a large effect on life coverage.
How much does smoking impact your life premiums? Studies have shown that the average smoker should expect to pay over 50 percent more than the average non-smoker. That’s a significant chunk of your money.
Should you quit smoking to save money? Well, you should quit regardless, for your own health. But you may be able to save money once you’ve kicked the habit. Insurance companies define a non-smoker differently; some insist that you must not have “smoked or otherwise consumed any form of nicotine products” for the prior year, while others insist a time frame for several years. However, reviewing your policy with your agent can be helpful in determining if you qualify as a non-smoker after quitting, which can possibly result in lower premiums.
Obesity also comes with health risks, such as heart disease and diabetes, which can affect your lifespan. As the number of obese people rises in America, insurance companies have to compensate for the increased risk.
How do you know if you are considered overweight by your provider? Calculate your Body Mass Index (BMI). An adult with a BMI between 25 and 29.9 is considered overweight, while an adult with a BMI of 30 or higher is considered obese. Obese individuals, like smokers, can face premiums over 50 percent higher than average.
Just as with kicking the habit of smoking, losing weight is good for both your health and your wallet. Seek the help of a nutritionist to create a new diet plan and increase your amount of exercise. You’ll feel better as you return to good health and your premiums could very well come down as well.
Contact us today to get a Round Rock life insurance quote at 512-989-6006.