There are 3 main things that affect your insurance rates:
- Your Age
- Whether or not you smoke
- Your Health
In order to save money on the cost of your life insurance or critical illness insurance, it is best to get a policy in force as young as possible. We always advise our clients to lock in a permanent policy as soon as possible to guarantee themselves the lowest rates. As you get older, the higher your cost of insurance is (as you are more of a risk for the insurance company) and furthermore, as you age your health starts to decline so any sign of a health problem will cause higher insurance premiums as well.
Smoking status – this is a tricky one. We often get clients that say – “yes of course I don’t smoke, well except for you know the odd cigarette or cigar when I have a drink or two”. Well being classified as a NON SMOKER means absolutely NO smoking at all. You must be completely smoke free for at least 6 months, without even so much as a puff.
The difference between the rates for a smoker and non-smoker can be quite dramatic, for example:
The rate for a 35year old male, 10yr Term for $500,000 (Manulife):
Non-Smoker = $30.88/month
»» Smoker = $55.36/month
The rate for a 35year old female, 10yr Term for $500,000 (Manulife):
Non-Smoker = $23.78/month
»» Smoker = $40.88/month
Therefore, if you have quit smoking and haven’t reviewed your insurance coverage, I urge you to do so right away as you may be leaving money on the table. We recently met with a client who quite smoking 2 years ago and has since had another child. By changing him to a non-smoker, we were able to double his coverage and still lower is monthly premium!
Your health… this is something we all take for granted, we hear this all the time “oh yeah, I’m going to be healthy forever, I don’t plan on getting sick”. Well I’m pretty sure if you ask anyone that has been diagnosed with a serious disease that this was not in their plan either. Do what you can to stay fit, healthy, and in great shape so that when you do apply for insurance you are eligible for the best rates.
So what can you do? Lock in your rates while you are young and healthy and don’t smoke!
Exercise regularly and eat smart to help maintain your good health. However, sometimes even that is not enough to avoid getting sick, so make sure you have good coverage in place, just in case.
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