Drewberry Insurance: Gaining Lower Life Insurance Premiums

March 22, 2011 - PRLog -- Life insurance companies look at a variety of factors when determining if a policy will be given out and how much the premiums will be.  High risk factors, including family history, obesity, smoking and poor health are defined differently by different insurance companies and therefore their premiums will vary greatly.  There are though, quite a few ways to help keep insurance premiums low.

Life Insurance is a risk oriented business.  When people buy a life insurance policy, they purchase cover to ensure that financial matters will be taken care of in the event of the worst case scenario, such as to repay a mortgage loan (covered by mortgage life insurance: http://www.drewberrymortgageinsurance.co.uk/mortgage-life-insurance/) so family members can stay in their home.  

On the other hand, life insurance companies hope the insured individual will have a long and healthy life so that they can continue to make a profit.  
Life insurance companies adjust premiums according to how at risk a person is.  The company may not even insure a person if they are too high risk.

What is a High Risk Classification?

A person is deemed at high risk of death by insurance companies for a myriad of reasons.  These high risks can be anything from smoking, to obesity, to dangerous sports or to a poor medical history.  High risk definitions usually vary greatly from insurer to insurer.
 
An existing condition, such as having or have had cancer, is one reason that people are classified as high risk.  Family history plays a major role in determining risk factors as well.  If there is a family history of cancer, high blood pressure and/or heart disease, many insurance companies will not look too favourably on a prospective client and consequently, premiums will be higher.

It is also important to note that insurers are even more cautious when life insurance is taken out with critical illness cover (http://www.drewberrymortgageinsurance.co.uk/mortgage-life...) as there is a much higher chance of a payout given that only a serious illness rather than death needs to be suffered. With this joint cover premium loadings can be much higher.

The Top 5 Ways to Lower Insurance Premiums

There are a number of ways to keep premiums at a reasonable price by lessening the chances of being seen as at risk, such as:

1.   Vegetarians are now beginning to be seen as less risky to life insurers.  This is primarily because a no meat diet lessens the risks of heart disease and some cancers.  Animal Friends Insurance indicates that vegetarians are up to 30% less likely to suffer from heart disease and up to 40% less likely to get some cancers.  Some insurers will give vegetarians up to 6% off of premiums.

2.   Obesity is becoming an increasingly important factor in life insurance premiums.  It is estimated that in the near future, obesity deaths will out-pace smoking related deaths so losing weight is a major incentive.

3.   It is recommended for a woman to buy a policy before becoming pregnant.  The ailments and complications that can result, albeit unlikely, from pregnancy cause insurance underwriters to be concerned and therefore premiums will be higher during pregnancy.

4.   Extreme sports such as skiing, snowboarding, parachuting and even horseback riding are near the top of the list of concerns with insurance companies.  They will probably charge more in premiums for extreme sport participants.

5.   The best way to lower insurance premiums is to not smoke.  There are proven links between smoking and throat and lung cancer, not to mention all of other terminal or serious diseases.  Smoking will incur hefty premiums no matter which insurer is used, sometimes by as much as 40% higher.

David Harris, senior adviser at Drewberry Mortgage Insurance, (http://www.drewberrymortgageinsurance.co.uk/) asserts that, “Being at risk does not mean that a person cannot gain cover; it usually just means that their premiums will be substantially higher.  Not smoking and forgoing extreme sports are the best ways to help keep insurance premiums low”.

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London based insurance brokers dedicated to providing insurance services for mortgage protection insurance. The main types of mortgage insurance brokered include mortgage payment protection insurance and mortgage life insurance.