Have You Kept Your New Years Resolutions? They Might Lower Your Life Insurance Costs

While most people make New Year's Resolutions when the first day of January rolls around, not everyone sticks to these resolutions. Maybe people would try harder to bring those resolutions to reality if they realized that not only would achieving certain resolutions improve their health, but they can also lower their life insurance costs! While people make a large variety of resolutions, there are many common themes. We will discuss three of these below, and determine how they could lower your life insurance rates.

You can ask your life insurance company for a new medical exam as many times as you want, and they cannot raise your rates, but they can lower them if your health has improved. If your health has improved and your current company won't lower your rates, it might be time to shop around for a new policy at InsWeb.

Weight Loss-Loosing Weight and Saving Money on Term Life Insurance

Most life insurance companies take your basic build into consideration when determining insurance costs. Your build is your height to weight ratio; if you weigh too much for your height, you may find that your rates will be higher. However, take this in moderation - being 10-15 pounds overweight (if you have no other risk factors) is unlikely to affect your costs. But, if you are more than 30 pounds over the ideal weight (as determined by the American Medical Association) for your height, your life insurance costs will probably be higher.

With the percentage of American adults that are considered overweight constantly increasing, it is more important than ever to keep yourself fit and healthy. Nearly 20% of U.S. adults are considered obese, and obesity, along with other underwriting factors such as blood pressure and cholesterol, can lead to serious health problems.

To be considered for preferred low rates, it is important to keep your height to weight ratio at or near the normal range for your body type. If you have lost weight and kept it off, be sure to let your company know. Again, if they won't lower your rates (after proving your weight loss), it might be time to shop around for a new policy that will offer you lower rates.

Reduced Alcohol Consumption and Life Insurance Rates

Alcohol's impact on your life insurance costs is a little harder to determine than some other underwriting factors. First of all, many people may not consider themselves alcoholics or even heavy drinkers, and therefore will not disclose their drinking on the application. Also, while most insurance companies have a specific definition for an alcoholic, many don't clearly define a "heavy drinker." Both conditions carry the possibility of higher life insurance costs.

There are a few ways insurers find out whether your drinking is heavy enough to negatively influence your health. They start off by looking at your application. For example, on InsWeb's life insurance application, the first question that refers to alcohol asks whether you've been convicted for driving under the influence in the last five years.

DUIs and Life Insurance Coverage

If you answer yes to this question, it is obviously a major red flag to insurers. (Keep in mind that the insurance company will find out, by looking at your driving record, if you answer no to this question but you have been convicted of driving under the influence.) Secondly, alcoholism, liver disease, and drug abuse are all listed under the medical conditions you must disclose on the application.

Another way insurers find out if your use of alcohol is negatively impacting your health is through your medical exam. Medical exams, which are used by insurers to evaluate your overall health, are always scheduled before your new life insurance policy takes effect. These medical exams usually include a blood test, and most insurers will screen for extremely elevated liver enzymes, which can signify heavy drinking (elevated levels of liver enzymes aren't always caused by alcohol, they can also be caused by certain illnesses and prescription drugs).

If you are undergoing treatment and successfully combating your alcoholism, your rates can level out over time, especially if there has been no history of, or treatment for, alcohol abuse in over 10 years (in fact, if this is the case, you may even qualify for preferred rates). If you are considered a heavy drinker, but your liver enzyme levels are not too high and you've never been convicted for driving under the influence, you may notice no increase in your costs, especially if you shop around for coverage.

Quitting Smoking and Life Insurance Savings

When is a consumer considered to be a smoker? Again, while this can differ from company to company, most people are considered a smoker if company-determined levels of nicotine are found in the urine of the applicant (urine tests are a part of all mandatory paramedical exams a consumer must undergo before a life insurance policy can be issued). While some companies mandate that any amount of nicotine found in the urine classifies a consumer as a smoker, other companies do not count trace amounts of nicotine that can be found from smoking the occasional cigar or tobacco pipe or from chewing tobacco.

When is a Term Life Insurance Consumer Considered to be a Non-Smoker?

Some companies may offer consumers who smoke less than 12 cigars a year or occasionally chew tobacco preferred rates. Among cigarette smokers, some companies differentiate between moderate and heavy usage, and charge moderate or light users less than they would heavy users. Many use the differentiation of "standard" and "preferred" tobacco users. You'll usually fall into the preferred category if you smoke but are otherwise healthy (with regard to weight, blood pressure, and cholesterol, etc.).

What if a smoker eventually quits? Term Life Insurance Benefits?

Each company has its own guidelines for how long a consumer must be free of tobacco to qualify for non-smoker rates. Some offer graduated scales, with rates that drop the longer you stay tobacco-free. At many companies, smokers who get insurance and then quit may be able to qualify for non-smoking rates after a certain amount of time passes (the length of time required varies by company, but can be as short as one year). If you have been tobacco-free for a year or longer, it might be a good idea to shop for a new term life insurance policy. Not only could you qualify as a non-smoker and see preferred or standard non-smoker rates, but life insurance prices have been decreasing over the past several years, and you might just be surprised by just how low your rates could be!

All in all, sticking to any of the above resolutions for a pre-determined period of time can lower your life insurance rates. Be sure to keep checking at InsWeb to see how low your rates can be!