The impact of lifestyle on life insurance premiums

Life insurance premiums are calculated based on a number of factors, such as your age, gender, health at the time of application, smoking status, occupation, lifestyle and hobbies. Your health can play one of the biggest roles in determining your premiums, so having a healthy lifestyle can have both personal and financial benefits.

Do you smoke or drink?

Smoking cigarettes, vaping and drinking alcohol are risk factors to your health, which is why insurers will generally ask how much you drink and smoke. Non-smokers generally pay lower premiums than smokers, and excessive alcohol consumption may attract higher premiums. Given up smoking or drinking since you took out your policy? Let your financial adviser know so they can review your policy, you might be able to reduce your premiums.

Eat well and exercise regularly

Regular exercise and a healthy diet have many benefits for our overall health, which is why it’s also viewed favourably by insurers. Some insurers offer discounts to customers who are enjoying a healthy lifestyle, get regular health checks and manage healthy body mass index (BMI) levels.

Manage pre-existing health conditions

Depending on your policy, pre-existing health conditions could result in exclusions applied to your policy or higher premiums to cover the risk. Treating your condition effectively, including making any lifestyle changes your doctor suggests, can have positive effects on your health and on the cost of your premiums. If a pre-existing condition has been successfully treated and no longer requires ongoing tests or hasn’t needed treatment for a specified period of time, your insurer may consider offering cover without any exclusions.

Have dangerous hobbies?

High-risk activities, such as skydiving, motorsports or skiing, or occupations that require regularly operating heavy machinery or working at heights, may attract higher premiums because of the increased risk.

Being healthy is its own reward – you’re likely to live longer and feel better – but when it comes to life insurance there can be financial benefits too.

Source: TAL