Smoking More Important Than Family

Only 10 per cent of West Australians would give up cigarettes to fund a life insurance policy.   Many West Australians appear reluctant to give up lifestyle choices for financial protection for their families. Only 15.76 per cent would stop buying coffee and 18.72 per cent would sacrifice take out meals to fund a policy. That reflected national trends from the survey of over 1000 people.

Clearly, Australians don’t want to sacrifice the costs of their lifestyle habits to fund a life insurance policy that will secure their families financial future. However, failing to take out life insurance can leave families at risk of severe financial stress should an unexpected tragedy occur.

For many, an unimaginable amount is at stake. This can range from being unable to cover living expenses to educating their children, or maintaining a roof over their loved one’s heads.

Annual premiums appear to prevent most people from taking out life insurance. A recent survey from LifeInsuranceFinder.com.au found that the primary reason for not taking out cover for 39 per cent of Australians was that it was simply too expensive.

There are ways to make life insurance more affordable:

Apply soon and always review
Each birthday you pass triggers a higher rate so your best strategy is to apply for insurance sooner rather than later. Taking out cover early in life will likely secure applicants a better rate as they are likely to be in better physical shape and susceptible to illness than at later stages of life.

Quit smoking
Smokers pay as much as double the premium rate of non-smokers. If you are currently paying smoker rates for your life insurance it’s never too late to have your premiums reviewed if you quit.
Applicants who have quit for 12 months or more can generally have their premiums adjusted to reflect non-smoker status. Remember a non-smoker is not someone who has the casual puff with their Friday evening drink - just one cigarette a week will place you in the smoker category.

Consider a Joint Policy
Married couples looking to take out cover for both partners can benefit from a 5-10% premium discount on joint policies depending on the provider they choose.

Moderate your drinking
Most insurance applicants will be asked how many standard drinks they consume each week.
Those that are perceived to be heavy drinkers may be required to submit a physical medical examination report to show if there are any symptoms indicating alcohol abuse. This may be considered with other indicators including alcohol related driving convictions, job-loss and marital problems.

Consider your Body Mass Index
Insurance companies will use a person’s Body Mass Index (BMI) to help them determine if their weight may be impacting on their health and making them a greater risk.

It’s important to note that an underwriter will never look exclusively at BMI weight and will only consider it against any other medical issues that may be present as a result such as, high blood pressure or cholesterol.

As with smokers, it’s never too late for policyholders carrying some extra weight to get in shape and have previous premium loadings reviewed.