Life expectancy is important because life insurers take on a financial risk by covering you. The higher the chance of an insurer having to pay out your policy, the more you’ll pay and the more difficult it will be to get coverage.
You have a pre-existing health condition. This is something such as cancer, diabetes and any type of autoimmune disorder. Morbid obesity is a big risk. However, if you’re managing your pre-existing condition well, insurers will consider that when setting rates. That’s because the more controlled your health risk is, the more favorable it is for your own mortality. That is good for everybody involved. It is a “win-win.”
You work a dangerous job. If you work in a risky workplace, you’ll be treated differently from someone with a desk job. The list of “dangerous” jobs is based on specialized tasks. However, if leave your hazardous job, you can ask your insurer to re-evaluate your rates.
You’re a daredevil If you enjoy the thrill of extreme sports, like car racing, piloting, skydiving, scuba diving, or mountain climbing, you’ll likely have higher life insurance rates. Insurers will consider the level of risk you’re taking and how frequently you participate in these activities.
You’re receiving drug or alcohol treatment. The type of drug and the length of time you’ve been clean play a part. Insurance companies look carefully at relapse rates, as well as the likelihood of contracting diseases through drug use, like hepatitis C.
You have a recent DUI. A DUI is more than a blip on your driving record. It can also impact your ability to get low-cost life insurance. If you received a DUI in the past year, you could expect a higher premium when you apply for life insurance. If you have multiple DUIs over five years ago, you’ll likely pay more than twice as much for coverage as someone with a clean driving record. However, the insurance company may not penalize you for just one DUI that happened five or more years ago.
You can increase your chances of approval by working with a life insurance broker or independent agent. They partner with a number of life insurance companies, so they can help you navigate your options.