A Healthy lifestyle could save you money
The most sensible ways to decrease the cost of your premiums without compromising on your level of cover is to get yourself healthy. This could also benefit you by reducing your health insurance, critical illness cover and income protection premiums.
Things to consider:
- A healthy lifestyle can help to reduce the cost of protection policies such as life insurance, income protection, critical illness and health insurance
- If you've made positive changes to your lifestyle, such as stopped smoking, it’s a good idea to inform your insurer, or even shop around for a policy which favours the change
- Be careful when changing your provider, make sure you have the adequate level of cover and the end date of the original provider and the start date of the new policy are aligned, to ensure you are always appropriately covered.
Life insurance premiums are based on the length and amount of cover, and take into account your medical history and your lifestyle. E.g. a smoker, or someone who is perhaps overweight, may see higher premiums to reflect the associated risks.
Using technology to monitor individual’s behaviour may well become common practice for the insurance industry like telematics car insurance or black box, charging premiums based on your actual behaviour rather than assumptions.
In the USA some healthcare insurers are already offering customers free fitness trackers with the incentive of lower premiums or other benefits to meet daily exercise goals.
If you have made any significant life changes e.g. stopping smoking, then it is worthwhile looking to change your policy. However before cancelling existing cover make sure to read the policy exclusions as cover varies depending on which provider you are with. If you choose to cancel your cover then make sure you have a new policy running beforehand.
Also, consider any pre-existing health issues you have as some policies don’t cover them.
Certain people may also be able to take out multiple life insurance policies, and in some circumstances, it may make sense to take out a new policy to cover changed circumstances while also keeping the old one.
One of the most important investments in yours and your family’s future is life insurance. Ensuring you have enough cover for you and your families should the worst happen.
Written by Robert Bester
Published on 17th November 2016