Impact of Health on Life Insurance Rates

Health And Lifestyle Play a Big Role in Life Insurance Rates

When applying for life insurance, some parts of the application process can feel invasive. Insurance companies want to know whether an individual’s medical history suggests that he or she might encounter health problems or die during the period in which a policy is valid—which means applicants must answer lots of questions about their health. 

Life insurance rates are based in part on a person’s medical history, and a medical exam is typically required as well. People with health problems may have to pay higher life insurance rates than healthy people.

Factors That Affect Life Insurance Premiums

• Your age
• Your current health and your health history
• Your family’s health history
• Your lifestyle
• Your occupation
• If you travel outside the country
• Your driving record
• The policy term you select
• Activities that are considered high-risk

What to Expect When Applying For Life Insurance

In the medical portion of a life insurance application, applicants may be asked questions about the health condition(s) of themselves or their family members. Include a complete list of prescription medications and the heights, weights, and details (e.g., any past or present illness) for all members of your family on this form.

In the lifestyle portion, individuals must disclose any criminal convictions and their habits surrounding alcohol consumption and drug use. The process will also involve details of your driving history, including any license suspensions, DUIs, or moving violations.

Insurance companies also want to know about travel habits and any risky or dangerous hobbies, i.e., skydiving, scuba diving, aviation, and motorized racing. These activities may raise premiums. 

Make Sure That Everything You Write Is Truthful

In addition to administering a physical exam to determine an applicant’s health; insurance companies verify your information by collecting medical records from a company called the MIB Group. To help detect fraud, the MIB Group collects information from anyone who applies for a life or health insurance policy. Lying or misrepresenting information on an application can cause a person to be denied benefits.

The Good News

If you are in the market for a life insurance policy but are concerned about your health, you still have a chance to get a better rate, even after you have purchased a policy. 

According to Forbes, many insurance companies allow for reconsideration if an individual has improved their health since purchasing their policy. Lower blood pressure, cholesterol, weight loss, quitting smoking, and other healthy lifestyle changes can all result in better rates. 

If you’ve improved your health, contact your insurer and ask for a reassessment of rates; another medical exam would be required, as well as the completion of a new questionnaire about one’s health.

With luck, making changes to your health can result in a significant reduction in your life insurance rates. 

 

Should you have any questions regarding your current coverage or want further information on these points, Basin Pacific Insurance is here for you. For more information on life insurance coverage offered by Basin Pacific Insurance, click here Or contact us at (509) 765-4785.