Like all types of insurance, life insurance is a balancing act. A balancing act of risk between you and the insurance company. The more risk they take on, the more you pay in premiums. It goes without saying then, that you can get cheap life insurance by taking more risk on yourself, or, even better, reducing the amount of risk you are of suffering perils. While no one can avoid death altogether, there are things you can do to reduce how much of a risk you are of death, dread disease and disability. When determining your risk, the life insurance company will ask about your health, your age and your lifestyle to determine your premium.
Healthier individuals pay less on life insurance premiums because they’re at less risk of death. Your life insurance company will ask about your exercise routine, and eating habits, and may even get you to go for a medical exam to check things like blood pressure and cholesterol. It goes without saying then, that healthier individuals, with low blood pressure and low cholesterol, pay less in premiums.
This means that you should healthy before opting into a life insurance policy, or at least inform your life insurance company in a change of your risk. (Such as by presenting them with cholesterol test results etc.) Cheap life insurance belongs to those who are fit. In fact, some insurance companies, like Discovery, reward members who live a healthy life.
The younger you opt into a life insurance policy, the cheaper your life insurance will be and the more of a payout you will qualify for. Why? Younger insureds are less of a risk so they pay less. They will also pay more in premiums over the course of their lifetime, so they earn a larger payout. Life insurance companies do not want to pay out more money than any policyholder has put in.
What’s more, the younger you start life insurance, the cheaper your premiums will stay. As insurance premiums increase each year based on a percentile, the smaller the premium to begin with, the smaller the increase.
Reckless lifestyles are a huge risk to a life insurance company. A skydiving instructor may not even qualify for accidental death cover given his recreational habits. About the only time it counts in your favour to be vanilla, is when it comes to opting into a life insurance policy. Avoid extreme sports and addictive habits, like smoking or excessive drinking to get cheap life insurance. What’s more, if you pick up a habit after opting into a life insurance policy and fail to mention it to your insurer, they can reject any claim on the policy as a result of nondisclosure.
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