Insurers take many conditions into account when deciding on the insurance policy cost. Two main factors as age and health play an important role here. Usually, the younger and healthier a person, the cheaper life insurance costs.
Before signing the contract, people undergo a medical examination. Based on doctors' opinion, the underwriter determines the risk class. Tobacco use, overweight, high blood pressure, or chronic illnesses such as diabetes are among the factors that life insurance companies consider to be risk factors. If you have risk factors when applying, it is likely that your policy will cost much more than a policy of a healthy person without bad habits.
“If a client of a LIC has lost weight or given up alcohol and tobacco, then the insurance company can revise the rates,” says Paya Schlass-Epstein, the Haven Life account manager.
According to her, the insurer will first double-check this information. “You need to prove that you have been losing weight within a year before the policy cost goes down. If you have a more complex disease, for example, cancer, you will have to wait a longer period,” the interviewee emphasizes.
As a result, insurers' clients can save 57% of the premium.
Photos are from open sources.