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The Life Insurance Blog

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Are Life Insurance Rates Lower for People with a Healthy Lifestyle?

Sep 13, 2016 6:00:00 PM

Life insuranceYou probably (hopefully) grew up learning that it was a good idea to eat more fruits and vegetables, exercise on a daily basis, and get plenty of rest at night. What you likely weren't told was that not only will these activities make you a healthier person who may live longer, but they will also save you money and even make you richer. In fact, according to a new research series from Money, there is a positive correlation between good health and good finances. One of the ways that a healthy lifestyle puts more money in your pocket is by giving you access to lower life insurance rates.

Health Matters With Life Insurance Rates

Life insurance companies investigate your health and habits before agreeing to issue you a policy and setting your rates. The things that are tested and reported include height, weight, blood pressure, cholesterol levels, medications, and questions related to habits and daily regimen. Whether or not you smoke is a key factor in determining your life insurance rates.

Aside from the fact that smoking is bad for you, your life insurance rates will be much lower if you ditch the habit before trying to purchase a policy. The savings are significant. According to a NerdWallet study, consumers who quit smoking or don't smoke at all save over $10,000 a year on life insurance premiums. When you quit smoking also factors into your savings. On average, it takes being tobacco-free for five years to attain the same life insurance rates as non-smokers. However, quitting for just a year can bring in savings of as much as 67 percent.

Healthy Lifestyle vs. Risky Activities

While activities such as regular exercise are likely to boost your overall health because it improves HDL (good cholesterol), some physical activities are considered "risky" when it comes to buying a life insurance policy. If you're an adventure-seeker and an adrenaline junkie, that's all well and good. Just expect that you may pay a bit more for your insurance premiums if you're a participant in these types of sports and hobbies. There is an extensive list of hobbies that insurance companies dislike, but if you like to rock climb, skydive, race (just about anything), hang glide, or scuba dive, expect your rates to go up no matter how healthy you are.
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Life Insurance Rates are Often Overestimated

Too many people avoid purchasing life insurance due to misconceptions about life insurance rates. According to one LIMRA study, consumers overestimate life insurance costs by as much as three times. If you are living a healthy lifestyle, you are in an even better position than the average consumer. Several tips for maintaining a high level of health include getting regular exercise and eating healthy foods. It's also good to avoid eating out too much and stay away from or limit some of those risky activities.

When you're fit and healthy, not only are your health care costs lower, but other living costs go down as well. Lower insurance rates are just one of the major benefits of healthy living, provided you are staying away from hobbies that might be considered risky. Contact us to learn more about affordable life insurance coverage or get started now with our term life calculator.