Factors That May Increase Your Life Insurance Premium Rate

There are various factors those play an important role when there is a calculation of your life insurance premium. So it is important to know what goes into the calculation process and whether you anything can be done to reduce your life insurance rate from your end.

The greater risk in your life, the higher will be the premium. This includes age and sex of the person holding policy. Though these are the factors that one can hardly do anything about, let’s concentrate on those that one can possibly control. Following are the factors that can increase the rates of your life insurance:

• Smoking: This is a big No when life insurance is concerned. People who don’t smoke pays low premiums than those who smoke. And even if you smoke one cigarette a day or occasionally even chew tobacco then you will be put into the category of smokers according to most insurance companies.

• Alcohol habit affects: If you are a heavy drinker or even if you were an alcoholic once, insurance companies take all these information into consideration and increase the rate of your policy.

• Obesity and weight: According to the medical statistics the heavier you are, there are higher the chances of chronic medical conditions and ill health. Being overweight leads to high blood pressure, cholesterol, and high risk of diabetes, heart attacks and stroke. Obese people can end up paying more than 50 percent of life insurance rates.

• Family health and medical conditions: Any medical history of your family or any chronic health conditions and there will be increase in the rates of your life insurance. Though in these cases you may not be able to do much but nowadays there are many companies that specialize in such of high-risk cases.

Most important never you should lie on your life insurance application in the hope to pay lower premium rate. Factors like drinking, smoking will definitely increase the cost but it is still better than finding out later that your policy is considered invalid due to incorrect information you provide.