You’ve been smart enough to purchase life insurance before you need it and for that you are saving
yourself and your family from financial destruction. However, your current premiums are costing you big bucks
right now. Why is that?
Here are some reasons that may explain why your rates are so high:
You bought life insurance that does not require a medical exam
Medical exams can be annoying and inconvenient, and if you have an illness or a health issue that could
prevent you from getting covered, purchasing life insurance that does not require a medical exam can
beneficial to you. If you simply chose to purchase insurance that does not require an exam because you were
nervous about taking an exam or just plain lazy, then you are now paying the consequences. Life insurance
carrier that don’t require medical examinations often hike up their prices, because they know a lot of their
clients have health issues that are not disclosed in their records. This is a preventative measure that
protects the company, and healthy customers end up paying for it.
If you are healthy and willing to take a medical exam, switch over to a different insurance carrier and save
money. By proving that you are in decent health, the companies that require medical exams can usually offer
you lower rates for your life insurance with the same amount of coverage. Why wouldn’t you want to switch and
save the money?
Your medical records are outdated
When you initially purchased your insurance, you took a health exam with less than perfect results. Since
then, your health has improved tremendously. So why are you still paying for your old lifestyle?
Talk to your insurance carrier about getting a health reassessment that may help lower your rates. If you’ve
adopted a healthier lifestyle, or lost an extreme amount of weight, a health reassessment can show that you
are now a healthy candidate in need of lower rates. Ask and you will receive.
If you are a smoker, I’m sure you are already well aware that you pay more than non-smokers for insurance.
However, did you know that smokers pay about three times as much for like insurance as non-smokers? Yes, it
is that much more expensive. The extra costs are due to the increased medical risks associated with smoking,
and even if you are a perfectly healthy individual, you will still have to pay the high rates just for one
Just think about how much money you could be saving on your premiums if you kicked the habit. If you are able
and motivated to quit smoking, you can start saving on your life insurance policy. If you are smoke–free for
at least two years, your insurance company may be able to lower your rates significantly. Quit now and not
only save money on those cancer sticks, but also on your life insurance premiums.
You have a below average driving record
First off, slow down speed racer. Keep up your bad driving habits and you may need the life insurance
sooner than expected. As for your past driving discrepancies, they may be accounted for in your life
insurance policy and can jack up your rates. If you are on the search for a new insurance policy, one
speeding ticket probably won’t hurt you. However, if you’ve had multiple tickets within the last three years,
or a more serious offense, like a DUI, within the past ten years, you will probably come across higher rates.
While most companies look at your driving records, you may be able to search online for a company that will
take you on without disclosing your past records. This is unlikely. Your best bet is to wait a few years
until your tickets are further buried in the past, and then try to apply for life insurance with a new
company that is unaware of your past discrepancies. This way you will not have to continue to pay for your
You have a poor credit history
You always knew your poor credit score would come back to haunt you. Anytime you want to make a big
purchase, companies will want to see whether you have a bad credit score or if you’ve ever filed for
bankruptcy. These are risky things for the company to take on in a client and can either prevent you from
getting insured, or jack up your rates.
To avoid both of these circumstances, try your best to improve your credit history before purchasing
insurance. If you can’t, then shop around for life insurance and talk to a broker or online representative to
find insurance that will cover you. Some companies don’t require your credit history to apply for life
insurance, and you’ll be able to get affordable rates, just like someone with a decent credit history. Just
make sure you can continue to pay your premiums and work toward improving your credit score.