It seems pretty harsh on the face of it, but if you’re more likely to die, then life insurance companies will charge you more so that they can recover the losses they are likely to incur from having to pay out. So, when you’re looking for life insurance, it’s worth noting that some things might make your insurer up their charges.
Knowing that insurers charge more if you’re more likely to die, it’s no surprise that your health will have a big impact on how much you will have to pay for life insurance. If you have or have previously had any life threatening conditions (like cancer or diabetes) then you can expect to pay a higher price. You may even struggle to get any cover, at all. Smoking or being overweight also make insurance more expensive, as well as having depression or asthma. This makes for pretty scary reading, but if the illness is under control or if you have been clear of it for multiple years, you probably won’t be badly affected. Some policies have “exclusions” in them, which will pay out unless you die of the illness you have or have had.
If you spend your free time doing wild, death-defying stunts, then unfortunately, chances are you’re going to have to pull off a pretty impressive stunt to avoid an increase in your life insurance bill too. Experts warn that if there’s anything you do as a hobby that statistically increases your chances of death, then you can expect to receive higher life insurance quotes. We’re not talking everyday hobbies here, though; so things like biking are fine, but you’re going to find the likes of mountain climbing and skydiving problematic when looking for insurance.
You’ve gotta do what you’ve gotta do, right? Unfortunately, what some people gotta do is much more dangerous than others, and that will be reflected in their life insurance costs. Any job that puts you in riskier situations will make life insurance more expensive. This mostly applies to more obviously extreme and hazardous occupations such as pilots and stunt doubles, but even more everyday jobs like waste collectors and farmers are likely to see price increases too.
Insurers are likely to want to know a bit about your immediate family’s health, too. If they have had any conditions that could lead to an early death such as cancer, then you may struggle to find cheap life insurance, particularly those that could get passed down to you. Conditions that were caused by lifestyle choices, though (e.g., smoking leading to a life-threatening disease) won’t affect you.
Reckless driving doesn’t just increase car insurance prices; it increases life insurance prices as well. The more dangerously you drive, the more likely you are to die in a traffic accident, so if you have received more than two moving violations in the last three years, you will have costlier life insurance.
So why not compare life insurance policies today and see how much you could save.
This should not be construed as advice and is guidance only.