Do you think your lifestyle doesn’t matter when applying for insurance? Think again. The way you live has a profound effect on not just your chances for approval but also on the size of the premium you’ll pay in the event that you are approved for coverage. Lifestyle matters to insurers for practical reasons. For example, those who eat right, exercise, see a doctor regularly, and don’t participate in high-risk activities (like hang-gliding, base jumping, cliff diving, and auto racing, just to name a few,) can live longer. They base their rates and approval decisions on raw statistics. Here are some of the key points to keep in mind about your lifestyle when purchasing life insurance policies.
Life Insurance Premiums
Life insurance premiums tend to be higher for unhealthy applicants. For instance, if you are a smoker, or overweight, have a lengthy history of hospital visits due to drug use and alcohol-related vehicle accidents, don’t expect to find a willing insurance provider who’ll sell you a policy. However, some carriers specialize in hard-to-insure adults, but to compensate for taking on the excess risk, they charge much higher premiums. Sometimes, the cost is so high that most folks simply choose not to carry coverage at all.
Long-Term Care Coverage
A typical long-term care policy provides protection from expensive unexpected events, primarily the very high costs associated with having to reside in a specialized facility for those who can’t take care of themselves any longer. The easiest way to learn about this topic is to review a helpful online guide about whether long-term coverage is worth the cost. It’s especially important to understand LTC coverage if you are middle-aged or older.
Some Carriers Refuse Unhealthy Applicants
Some carriers are simply unwilling to deal with unhealthy policyholders. The way they do it is to implement a strict screening process that asks dozens of health and lifestyle questions and typically includes a full medical checkup. When you try to buy a policy from one of these companies, you better believe that your lifestyle matters. How you live, how you spend your free time, and your history of risky activities all go into the decision-making process and even one negative factor can prevent you from filing a successful app. Insurers have all sorts of clever and effective ways of ferreting out information about how people live. Social media, medical records, arrest reports, and much else can give them all the data they need to approve or reject just about any applicant.
You’ll Pass Exams Easily
In most cases, if you conduct your daily life in a healthy way, attend to illnesses quickly, visit a doctor when you have serious concerns, don’t smoke, don’t drink alcohol to excess, exercise at least moderately, and keep your weight within normal limits, you shouldn’t have a problem passing medical exams to get insurance. There are options for coverage that don’t include exams, but they often come with much higher premiums. For the most part, if you want the best rates, a medical exam is in your future. The good news is that you can maximize your chances of passing it if you take good care of yourself.