Did you know that making changes to your lifestyle can not only improve your health but could also save you money on a life insurance policy?
This is because you’ll need to give information about certain lifestyle habits during the application process.
Find out exactly what information you’ll be expected to provide and how this could impact your life insurance application in this guide.
What lifestyle factors affect life insurance premiums?
When applying for life insurance, you’ll need to give information on the following lifestyle factors:
Weight and height
You’ll need to give your weight and height so that your insurer can work our your BMI (Body Mass Index).
If you have a healthy BMI, this won’t affect your life insurance application, but having a BMI that's too high or too low could mean you'll be charged more.
A high BMI often indicates obesity, which means you could be more likely to develop health conditions such as heart problems, stroke or diabetes.
According to the NHS, a BMI of 30 – 39.9 puts you in the obese range and a BMI of 40 or more classifies you as morbidly obese.
A low BMI could indicate being underweight, which also has its health risks. A low BMI is considered to be anything below 18.5.
Smoking status
If you're a smoker and need life insurance it might cost you more due to the increased risk of developing certain medical issues.
It’s estimated that smokers have a life expectancy of around 10 years less than non-smokers, as smokers are at a higher risk of health conditions like cancer and heart problems.
Did you know what vaping and using replacements like patches or gum can also classify you as a smoker?
Most insurers will need you to have been free of all nicotine products and replacements for at least 1 year before they'll class you as a non-smoker.
Hobbies/pass times
If you’re a thrill seeker who takes part in extreme sports as a hobby, you’ll need to let insurers know.
Your hobbies may keep you fit and healthy but due to the increased risk of death while taking part in these types of activities, you’ll likely be charged more.
Examples of ‘high risk’ activities and extreme sports include quad biking, sky diving, scuba diving, deep sea fishing, rock climbing and mountaineering.
Alcohol consumption
Having the occasional drink now and then shouldn’t impact the price you pay for life insurance.
If your alcohol consumption indicates that you’re regularly drinking more than the recommended amount (14 units per week) you could be charged more for a policy.
Drug use
Due to the health risks, you won’t be able to take out a life insurance policy if you are regularly taking recreational drugs.
Insurers will often need you to have been clean from drugs for a certain period of time before they’ll offer you a policy.
Recreational drug use refers to any drugs that aren’t prescription drugs or aren’t required for medical reasons.
Travel habits
Whether you’re travelling for work or pleasure, this could impact your life insurance premiums.
Don’t worry, going on the odd holiday here and there shouldn’t impact your cover.
Insurers are more concerned with frequent travel to countries that are considered as ‘dangerous’ (for example, due to conflict or disease).
Mental health
If your lifestyle is causing you stress and anxiety, you'll need to let insurers know of any mental health conditions you're living with.
Our mental health has a big impact on our physical health. For example, those living with high stress levels are more likely to have high blood pressure.
It's important to take care of both your physical and mental health.
Why do insurers need information about my lifestyle?
Insurers need to know about your lifestyle to understand whether they can offer you a policy and the price you’ll pay if they do.
In the eyes of insurers, any health or lifestyle factors that make you more likely to die (and therefore, a claim to be made on a policy) increases your level of risk.
Those who are seen to be ‘high risk’ tend to pay higher premiums.
It's always best to be open and honest during the application.
If you lie or withhold information about your lifestyle choices, this can prevent a pay out from being made when the time comes.
What other factors affect life insurance?
As well as the lifestyle factors listed above, the following factors can also impact your life insurance application:
- Age – Typically, the younger you are, the less you’ll pay for a policy.
- Physical health – you’ll need to give information about any medical conditions you’re currently living with or have been diagnosed with in the past.
- Family medical history – insurers will ask questions about your family medical history to see if you’re at risk of developing any hereditary illnesses.
- Occupation – having a dangerous occupation (such as working at great heights, with heavy machinery or being in the armed forces) can increase the price you pay for life insurance.
- Type of cover – the policy type you buy, as well as how much cover you need can also impact the price you pay.
Should I tell my insurer if my lifestyle or health changes?
You’re not legally obligated to let your insurer know of any changes that happen during your policy term, but it can be beneficial to keep them updated.
If you’ve made positive changes, such as quitting smoking or losing weight you could benefit from cheaper premiums.
If you take up a dangerous hobby or start smoking during the policy term, you also might want to let them know.
It won't increase the price you pay, but it just means they're updated should you die.
If they didn't know when this change took place, they may need to investigate to make sure it wasn't present at the time you applied - this could slow down any lump sum payments to your loved ones.
How to lead a healthy lifestyle (and save money on your premiums)
Making a few lifestyle changes can help you to make a positive impact on your daily living and it could mean that you save money on life insurance in the process.
- Exercise regularly – The World Health Organisation (WHO) recommends at least 60 minutes of activity per day.
- Eat a balanced diet – a balanced diet includes eating all food groups such as fruits and vegetables, grains, proteins and healthy fats.
- Drink in moderation - no more than 14 units per week.
- Quit smoking/vaping – most insurers will need you to have been free of nicotine (including replacements) for at least 1 year, although this can vary between different insurers.
- Maintain a healthy weight - a healthy BMI is between 18.5 to 24.9.
- Reduce stress - it's easier said than done in most cases but if you can cut back on things that cause you stress it can have a positive impact on your mental and physical health (for example, helping to lower blood pressure).
If you need help with any of the above, the NHS have a range of useful resources.
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