Life Insurance Cost

Did you realize that smokers may have to pay as much as three times more for a life insurance premium than a nonsmoker? Obviously you can save quite a bit of money on your life insurance costs if you quit smoking. Insurance rates for medical and car insurance are increasing, while the cost of life insurance premiums actually have decreased by as much as fifty percent recently. Life insurance is actually more affordable now, at least if you don’t smoke. On the other hand, the premiums for people who smoke have increased.

To people who smoke, the higher premium costs for life insurance might seem like discrimination. However, these higher premium costs for smokers really are justified. Smokers on average die twenty five years before the average nonsmoker does. Given the fact that rates for life insurance are based on the statistical likelihood of their policyholders dying, it does make a lot of sense that smokers would be required to pay more. High mortality rates for smokers are often related to a number of ailments caused by nicotine, including pneumonia, cataracts, Alzheimer’s disease, peptic ulcers, lung and other types of cancer, heart disease and strokes.

In terms of who is considered a smoker, most life insurance companies don’t consider you a nonsmoker until you haven’t used tobacco for 12 months. Once you have accomplished this, you will qualify for their standard rates. If you haven’t used tobacco for at least three years, then you may qualify for their preferred rates. Being smoke free for five years can qualify you for your insurance company’s preferred plus rates. Those are the best available rates. On the life insurance application it asks about your use of tobacco. Even smoking a few cigarettes a year or enjoying an occasional cigar will classify you as a smoker. During the medical exam, your urine analysis will be tested for nicotine. If you only smoke infrequently, then you may pass the urine test. However you need to be sure you are honest about your use of tobacco and smoking.

It may be tempting to stop smoking for a couple days, try to pass the urine test, and then lie about the fact that you smoke on the insurance application. This is quite risky, however. If you die and your claim is investigated by the insurance company, they could find out quite easily if your death was related to smoking. If it was related then the claim would definitely be denied, leaving your beneficiaries with nothing.

The CDC (Centers for Disease Control and Prevention) published a survey recently of the states that were most obese in the U.S. Most of the top ten of the fattest states were Southern states, due to the specific dietary habits of the region. There is a greater likelihood for people in Southern states to eat fried and high fat foods, which are contributing factors to obesity. The states with the highest rates of obesity also have the premiums for life insurance. This is not surprising since obesity is linked to a number of fatal diseases and ailments.

Using the body mass index (BMI), the CDC found the highest percentages of obese people in the following states: Mississippi (32%), Tennessee (30.1%), Alabama (30%), Louisiana (29.8%), West Virginia (29.5%), Arkansas (28.7%), South Carolina (28.4%), Georgia (28.2%), Oklahoma (28.1%) and Texas (28.1%).

So why are life insurance premiums higher if you are considered overweight? When a life insurance company underwrites an insurance application your physical build is factored into their consideration. Your weight and height measurements are used to help determine which of the rating categories you fall in. Insurance cmpanies usually will use the applicant’s BMI. The BMI is calculated by dividing weight in kilograms by height that is measured in meters squared. Individuals who have high BMI’s (the normal range is considered to be 18.5 to 24.9), will be still be eligible for life insurance but will not qualify for the best premiums. This is because obesity can shorten an individual’s life which makes them a higher risk for a life insurance company. Obesity can contribute to: some cancers, strokes, heart disease, high cholesterol, type II diabetes and hypertension.

You may be surprised to learn that it is usually extremely easy to find a life insurance policy if you are young and healthy. The insurance companies know from experience that the odds are tilted in their favor that they will never be required to payout on someone of a young age. Also, they recognize that it is easy for young people to pass most medical exams, and it is an overall easier process to get insurance when you are young and vibrant.

However, not everyone is so lucky to have good health on their side, yet those people need to have life insurance coverage as well. It may become a big problem to obtain a life insurance policy if you are unable to pass the medical exams. In fact, most people with poor health will not even attempt to get life insurance because they believe they are uninsurable. Regardless, you know that you really need it. How do you go about getting health insurance without being subject to a thorough medical exam?

You may be surprised to know that not all policies will require a medical exam. If you feel that you may have trouble passing an exam or are simply scared to take one, then a policy that does not require a medical exam may be your best option. Unfortunately, these policies typically come at a little higher price since the insurance company is taking a greater risk. However, obtaining the policy itself is fairly simple.

The bad part about these policies is they are not the most affordable ones on the market. Insurance companies realize that people that seek out these types of policies tend to have medical conditions. Therefore, the premiums are considerably more expensive. You may have to do a lot of shopping around to find a life insurance policy that is affordable enough for you.

There are numerous life insurance companies in the marketplace. With the proper degree of search, it is very likely you will find a policy that meets your needs. While life insurance policies without exams are more expensive that may cause you to shy away from them, they are your best bet of obtaining a life insurance policy in general.

The core idea here is that you must have life insurance. It is not one of those things in life you can simply avoid. If you pay a slightly higher premium so that you can avoid taking a medical exam, you will be better off in the end. Life insurance is an absolute must-have. If you can get it without a large hassle, you should take it!