Insurance is all about risk. If you have habits which put your health in jeopardy like smoking, the chances of you eventually making a life insurance claim are higher.
Insurance companies have to find a fine balance between charging competitive premiums and making sure there is enough money in the business to cover the cost of paying out claims. To manage this, they weigh up the likelihood of an applicant making a claim and price the cover accordingly. So if you don't look after your health, you are likely to pay more for your life insurance.
Incentives to quit today
By quitting smoking today you will not only save money on the cost of buying cigarettes but you will also benefit from cheaper life and critical illness premiums in the future. Most life insurance companies will classify you as a non-smoker once you have stopped smoking for a year. 12 months on from lighting up your last cigarette you could save over 60% on your existing life insurance premium.
Remember to inform your life insurance provider if you have succeeded in your quest to become nicotine free for a year. When it comes to reviewing your life insurance policy be sure to search the market to find the best deal. It is likely that you will find a more competitive premium that that offered by your current insurer.
Honesty is the best policy
When applying for life insurance always make sure you tell the truth about your medical history and your smoking status. This information forms the basis of your personal life assurance policy and failure to disclose important facts could mean you won't be paid out on a claim you make.
It can seem like an impossible task trying to remember all the visits you have made to a doctor or hospital, or details of time you have had off work due to ill health, particularly if you are a more mature applicant with more history. However, it is worth taking time to complete this section carefully and as accurately as possible.
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