Habits You Don’t Want Your Life Insurer to Know About

When you purchase a life insurance policy, you will meet with an agent or representative of the insurance company. They will ask you a series of questions regarding your health, habits and lifestyle. Many people think these questions are simply for their information without thinking how they may affect the cost of their insurance policy. Life insurance companies, like all businesses, are in business to make a profit. This means your habits and lifestyles may cause you to be a higher risk customer and they will charge you more for your policy. There are a few things you do not want to tell your life insurer about because it may stop you from getting insurance or boost up the price.

Smoking

Smokers are at an increased risk of being diagnosed with respiratory issues such as lung cancer or emphysema. These conditions can cause an earlier death than those who do not smoke. Due to the health risks associated with smoking, many insurance companies charge a much higher premium for those who smoke than those who do not. The best way to avoid a higher premium is to quit smoking.

Extreme Hobbies

If you are a pilot, skydiver or fly hot air balloons, you can expect the insurance agent to ask multiple questions regarding your experience and training. You can choose to tell the truth or stretch the truth. Keep in mind, if you do not tell them the truth, they may be able to deny your claim if you die while participating in your hobby. If they deny your claim, you have paid for life insurance that will not benefit your loved ones. It is best to obtain the correct training and licensing required for your desired activity, as this will help to lower your premium.

Sleep Habits

Many people do not realize that their sleep habits can affect their life insurance premium. Sleepless nights can cause a decrease in cognitive function and cause you to lose focus while performing dangerous activities such as driving. Of course, sleep is important for everyone but some people are not capable of sleeping a full eight hours at night. You may not be asked about your sleep habits and if this is the case, you may not want to share them.

Prescription Drug Use

Many insurers will look at what the medication is being used to treat and if your condition is stable at the time of purchasing the policy. These factors will then be used to determine if your prescriptions will affect your premium. If you are being treated for high blood pressure, the insurer will look at your current blood pressure to determine how well you are managing your condition.

Eating Habits

If you frequently eat junk food or fast food, you may be at an increased risk for several medical conditions such as heart disease and obesity. These medical conditions can cause an earlier death than those who eat a healthy diet. This does not mean the occasional cheeseburger will raise your premium but a diet of junk food may.

 

Posted by on Oct 21 2013. Filed under Blog. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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