June 2017 Volume 10, Number 6 | |||||
Lower Your Life Insurance Premiums — By Taking Better Care of Yourself When you purchase a life insurance policy, the amount you’ll pay in premiums is determined by factors you control. A life insurance policy is a contract between you and a life insurance company. The insurer agrees to pay your beneficiaries a benefit if you die. The rate you pay is determined by health factors and the type of policy you choose, either term or permanent. A term policy is good for a limited time and is less expensive; a permanent policy costs more, but provides lifetime coverage. Lose Weight Being overweight is costly. Studies show that if you are 25 percent overweight, you have a 25 percent greater chance of dying at a younger age than someone who isn’t overweight. Excess weight can lead to a variety of health issues, such as high blood pressure, heart or digestive problems, high blood pressure, or diabetes. Watch Your Sodium Intake Insurance carriers want to know if you have high blood pressure, a condition that adds stress to your arteries and can lead to serious problems, such as heart disease and strokes. Limit Alcohol Consumption An occasional drink won’t affect your rates, but more than two drinks a day will knock you out of preferred, lower rates. Three or more daily drinks will take you out of standard rates. Insurers take this into consideration because alcohol abuse can lead to cardiovascular problems, dementia, stroke, depression, liver disease and gastrointestinal problems. . Choose a Less Dangerous Occupation If your job has a higher than normal chance of leading to premature death, you could be denied coverage or may have to pay higher premiums. An insurance company might charge $2 more for every $1,000 of coverage. If you have a $200,000 policy, it would cost you an extra $400 annually. Stop High-Risk Recreational Activities Do you like to live on the edge, participating in activities like skydiving, skiing, hang gliding, rock climbing, hot air ballooning or scuba diving? Participation in risky activities could mean you will be denied coverage or be charged higher rates. Remember, not all insurers use the same list, so it pays to talk to your advisor for options. Quit Smoking Smokers in their 30s can expect to pay two to three times more for a policy than nonsmokers. Smokers in their 40s can expect to pay three to four times more. [return to top]
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Do Some Homework and Retire Early How Technology Saves You Money Lower Your Life Insurance Premiums — By Taking Better Care of Yourself |
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