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Can I Do Anything to Qualify for Lower Insurance Premiums?

Is it possible to lower life insurance premiums while maintaining the amount you need?

Life insurance premiums are based on specific factors related to risk. These factors are measured by a complex set of statistics. Actuaries are people who study the facts related to death, lapses, and disease. They determine how much premium to charge to ensure the company can pay future insurance benefits and offer a good product to the customer. The higher the risk associated with the insured, the higher the premiums will likely be.

In this article, we will discuss some factors you can change for a lower life insurance premium, and those factors that you may not be able to change. This information may help you in choosing the type of policy that works best for your situation.

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Your health condition and your family’s health condition all factor into premium rates. If there is a family history of a chronic illness or genetic condition, this may affect the premiums.

Age is working against you

The earlier you buy life insurance for you and your family, the lower the premium will be. A whole life insurance locks in the premium for life, regardless of your future health condition. There are more health risks associated with aging, so it works against you to delay buying life insurance.

You may be in a hazardous occupation

If a person’s occupation has safety risks or exposure to toxic chemicals, it can be considered high-risk and there may be higher life insurance premiums.

Your gender matters

Your biological gender can affect your premium rates. At the same age, a female may pay a lower premium rate than a male due to mortality tables and studies which show on average women live longer than men.

Stay healthy

Your health condition, and your family’s history of health factor into premium rates. A family history of a chronic illness or genetic condition may affect the premiums. If a prior health problem has improved, then this may improve your chances of lowering your premium rates.

For example, if you have high cholesterol and are obese, but you lose weight and this lowers your cholesterol, your rates may go down. If after a year or more of your health improving, you can contact your life insurance agent and request a reconsideration or re-rating by the underwriters.

Nicotine use and a high-risk lifestyle

Nicotine use or a high-risk lifestyle can affect the premiums of a life insurance policy. A high-risk hobby or avocation is usually some sort of physical activity that involves a higher chance of injury, accident, and death.

Examples would be parachuting from a plane, high-risk sports, or flying a plane.

If your nicotine habit or lifestyle changes, there may be a waiting period for lower premium rates to be applied to your policy.

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Reevaluate the duration & type of insurance plan

Whole life insurance is locked in regardless of future changes in your health status, age status, and other factors affecting premium rates.

Whole life insurance allows the premium to be locked in for the life of the policy. Term insurance is for a period of time which means when the term is up, your rates may go up due to your age, health, and other factors.

You can also reduce your coverage amount.

Another option available is reducing the coverage amount of your current policy. This is not the ideal situation, but if it means keeping your life insurance versus dropping it completely, it may be a solution. There may be some waiting period (up to a year) before you can change the amount. The licensed agent or broker who sold you the policy should be able to advise you.

As discussed, there are many factors that you may or may not be able to change.

To learn more about how you may be able to lower your premiums, contact a licensed life insurance agent. The agent can discuss different options and types of life insurance that may be a good choice for you.

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