Lifestyle Affects Your Life Insurance

Insurance companies work with statistics. They examine the frequency of health issues arising among their insureds based on a number of factors and determine qualification for insurance based on those factors. Even though an individual may not experience a shorter life expectancy due to specific causes, the cost of insurance and a person’s ability to acquire insurance are still impacted.  

Smoking and alcohol use, often paired together, can cause multiple problems. Science has proven that these can shorten life, increase the chances of a major health crisis and can be instrumental in accidental death.  As such, insurance companies charge much more premium when insuring people who are avid smokers or drinkers.  

A person’s occupation can also impact the cost of insurance and a person’s ability to obtain it. Offshore workers, bartenders and hair dressers may find that their insurance premiums are quite high compared to their friends’. Insurance companies look at statistics, which is the underlying formula for the insurance premiums. People that work in dangerous professions, like an offshore worker who may not make to a hospital in a timely fashion or a deep sea diver who could easily get the bends, would be considered high risk.  

Bartenders and hair stylists work around substances that could be harmful. Bartenders work in bars that may not be in the most affluent areas of the community. Fights, brawls and theft affect the statistics associated with this profession. A hair dresser works with chemicals all the time. Although great care is taken, the likelihood of a health issue developing is statistically greater.   

When people take up new hobbies they envision the excitement of starting something fresh. They don’t think about the impact it may have on obtaining life insurance. Dangerous hobbies, like amateur bull riding, mountain climbing, or piloting a lightweight aircraft, can be statistically troublesome. Getting kicked by the bull, falling, or running into power lines is a definite risk in these  and any hobby that presents a chance for serious bodily injury.

As mentioned, insurance companies look at the statistics associated with each individual and his or her lifestyle when they apply for insurance. Although the situations listed here may not totally disqualify a person from insurance, they may significantly impact the premium that a person is charged thus making affordable life insurance difficult to find.  

It is always best to apply for insurance when a person is young and just out of school. If the premium for the needed death benefit may not be affordable because of salary constraints, the applicant can buy convertible term insurance. The premiums would be more affordable and as the salary grew, the policy could be converted to a whole life policy that would have a fixed premium for the life of the policy. Waiting until later may mean not only higher premiums based on increasing age, but also a disqualifying occupation, bad health, or a dangerous hobby may make it unattainable.