Sensitivity of Life Insurance to Lifestyle

When it comes to life insurance and its relation to lifestyle there are to aspects that are of interest to us. Firstly and most importantly is how your lifestyle now will contribute to changes in your insurance policy in terms of acceptability and also your premiums charges. Secondly we will also look at the flipside where you can use life insurance to continue your lifestyle if you are the beneficiary of a life insurance policy for and deceased person.

Let’s talk about the importance that lifestyle factors play with regard to life insurance quotes and long term costs. Although many of us do not think twice about our current lifestyles there are many factors that insurers will look at when we request for a life insurance policy. Of all the factors the most outstanding in determining your overall risk and thus cost of your policy will be if you smoke. Almost all insurers have recognized that smoking is extremely hazardous to your health and have adjusted their policies to recognize the large risk that smoking poses to one’s health. The fact is that it is almost impossible to get away from highly inflated life insurance figures if you are a smoker.

Another lifestyle factor that many insurers have been increasingly factoring into their life insurance policies is the policy holder’s level of obesity. Research has indicated the direct relation between someone’s level of obesity and their likelihood of getting coronary diseases and a whole other host of unfavorable associated illnesses that prematurely shortens your life. Most if not all insurance agencies have factored in obesity into their actuary tables and as such obese people will more than likely pay much more for their life insurance policy.

Another factor that insurance companies will take into consideration when pricing your policy is also the level of pre-existing illnesses you have and also your history of illnesses. It is only natural that an individual that is frequently sick will have a higher chance of getting ill again and subsequently dying. This is why insurance companies will require a detailed medical check and also access to your medical history before offering you a life insurance policy. It is normal that if you have a pre-existing chronic illness that insurance agencies will reject your application for life insurance.

The trend now is for insurance companies to even look beyond your current and past state of health in determining the cost of your life insurance policy. Some more advanced insurance agencies will even look at your family history and your genetic make-up and decide which diseases you might be pre-disposed to getting and value your insurance policy accordingly. There has been much objection about this type of insurance pricing but it looks to be gaining popularity amongst the insurers and clients are increasingly happy to accept the new valuation methods.

When looking at life insurance and lifestyles the opposite also holds true. Life insurance is set up so that the beneficiary can continue the current lifestyle that he/she enjoys even if the insured is the sole bread winner in the family.