The Star | How to save money on life insurance
Purchasing a life insurance policy is an important way you can financially protect your family in the case of your premature death, but life insurance premiums can take a chunk out of your budget. But there are ways to keep the cost down.
Your insurance premiums are generally based on the type and amount of insurance you buy and your chance of death based on your age, your medical conditions and your family health history. However, lifestyle factors under your control like smoking, drinking, your weight and your driving record also significantly impact the cost of life insurance.
You may be surprised to learn that even after you have purchased a life insurance policy if you can show that you have eliminated certain risk factors for a year, your insurance company will re-calculate your premiums, saving you considerable money over the life of the policy.
“In these circumstances the life insurance company would likely investigate and send a nurse out to do a new medical examination before reducing the premium rates,” says insurance broker Chantal Marr, the president of Toronto’s LSM Insurance.
Here are some examples of factors that influence the cost of life insurance and the impact on your premiums that can result from lifestyle and other changes.