3 Habits that Increase the Cost of Your Life Insurance Policy

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life insurance policy California

The world of insurance is overwhelming at the best of times, but few policies are as confusing and as unpleasant as a life insurance policy.

It’s hard enough to find the money to support your loved ones while you’re alive, and now you have to find an insurance policy that can support them long after you’re gone, too.

We get it, and we can help. If you’re looking to understand life insurance better, then you need to know how life insurance policies justify their high premiums. Here are three bad habits that might be increasing the cost of your California life insurance policy.

Smoking and Drinking

By now most of us know that excessive or habitual smoking and drinking can reduce your life expectancy—so we shouldn’t be surprised to discover that insurance agencies know it, too.

Think about it this way: the more likely your death, the more likely your insurance company will have to pay. Many agencies will ask about your smoking and drinking tendencies so they can analyze your risk factor. 

Don’t worry just yet, though, because we have good news, too. If you quit smoking and drinking (and can prove it), you may qualify for a lower life insurance policy premium. 

Adventurous hobbies

Adrenaline junkies need a more extensive life insurance policy than most couch potatoes, so if you fall into that group, you can expect to pay a little more no matter what.

After all, you’re much more likely to sustain an injury or die from your sport. Chances are, your insurance company will raise your premium and add specific clauses to your life insurance policy that most people don’t have.

California residents rank especially high when it comes to participating in life-threatening sports. If you fall into that group and still do not have life insurance in California, you should probably look into that now. Trust us, it’s better to be prepared than uninsured.

Most insurance providers look at how many sports you play, how many hours you play, and how dangerous your sport is in general. Rock climbing, for example, has a higher risk level than football but a lower risk level than skydiving. They’ll adjust your life insurance policy accordingly.

Your Driving Record

You would think that your driving record would only impact your auto insurance, but this isn’t the case if you are looking for a life insurance policy. 

If you have had the misfortune of getting in frequent accidents or traffic violations, your life insurance provider will likely label you as a high-risk client. This then leads to higher premiums as they will feel that you are more likely to die in an accident. Not only will it affect your premium, it can also impact whether you are even approved for a policy with some providers.

Unlike the other points above, you can’t do much to reduce a high premium from poor driving—unless, of course, you have a time machine. Instead, you’ll have to wait for the items to fall off your driving record. Once your record is clean, you can ask your provider to lower the cost of your life insurance policy.

If you are looking to take out a life insurance policy and you want to know more about how the premiums are worked out and what could affect it then hopefully, these few tips above will give you an idea if you would be looking at a higher premium or not or maybe give you an idea why your premium has gone up.