Begin by losing weight to get the best life insurance rates and save money. Start by drinking less if you are a heavy drinker.
According to Jim Toole, Managing Director of Life & Health at MBA Actuaries, Inc. in Winston-Salem, N.C., obese and overweight people are at high risk because having a high BMI, cholesterol, or blood pressure reduces life expectancy. Similarly, drinking more than two drinks per day disqualifies you from the cheapest preferred rates; drinking more than four disqualifies you from standard rates.
Whether you choose term life insurance, which has the lowest starting rates, or whole life insurance, which has fixed rates, your rates will rise based on your age, gender, and lifestyle. Because you can’t get any younger or change genders, live a healthier lifestyle to save money on insurance.
Maintaining a healthy weight, and thus a healthy BMI (body mass index), cholesterol levels, and blood pressure, will result in the best life insurance rates. Your life insurance company may be interested in learning about any wellness, fitness, or counseling programs you participate in, but low insurance rates are only given when results are demonstrated.
Smokers, for example, can pay up to three times the life insurance premiums of nonsmokers, and simply being enrolled in a smoking cessation program may not be enough—you may have to prove your nonsmoking status through a blood or urine test.
Even if you stop smoking, it may take one to five years for your insurance company to consider you a non-smoker. Some life insurance companies may offer to reduce your rate after you have quit smoking for a certain period of time, but this varies by company.
Quit smoking if you smoke. Reduce your alcohol consumption if you consume too much. The American Heart Association recommends at least 30 minutes of physical activity three times per week. It’s not just better for your health; it’s also better for your wallet.