A man running on a trail under a cloudy blue skyWhile difficult to contemplate, obtaining life insurance is a critical aspect of making sure loved ones are taken care of in the event of your untimely death. Every life insurance policy comes with a premium attached, and while there are uncontrollable factors that can affect how much you pay, there are some personal decisions that may lower your out-of-pocket expense. A brand-new year is a great time to recap what affects life insurance premiums and to make resolutions to live a healthier and safer life.

Controllable Factors

Before taking a deep look at what exactly affects life insurance premiums, it’s important to first understand the two types of life insurance: permanent and term. Permanent life insurance can last an entire lifetime and may build cash value, and premiums for these may be less expensive over time since they usually do not increase. Term life insurance, on the other hand, is usually better for those with short-term, temporary needs—it does not build cash value and while it is often initially more affordable, premiums may increase.

The amount of risk you experience in your day-to-day has a large impact on how much life insurance companies will make you pay in premiums and can even be a determinant factor in whether they insure you at all. If you frequently travel to risky areas, are a smoker or have a dangerous hobby such as skydiving you may see higher insurance premiums. Companies also look at your driving record as well as if you have a criminal background to determine your level of risk. Some controllable health factors such as your body mass index (BMI), cholesterol levels and blood pressure can affect how much you pay as well. Choosing a longer-term life insurance policy is often more expensive than one that is short-term.

Uncontrollable Factors

For some, health measurements such as BMI, cholesterol levels and blood pressure are not easily controllable, but they still do have an effect on your life insurance premiums. Uncontrollable aspects of your life that could make your premiums higher include your sex, your age or whether you have a family medical history that shows potential health risks at a young age. A person’s past medical history can also affect life insurance premiums, and while previous events are set in stone, making a concerted effort to become healthier could help lower premiums as time goes on.

Resolve to Be Healthier and Safer in 2022

Making positive lifestyle changes and taking on less risk overall is really the key to lowering life insurance premiums. As 2022 begins, now is the perfect time to hold yourself accountable to New Year’s resolutions that will help you live a healthier and safer life. If you currently smoke, try cessation methods such as nicotine gum or patches to cut this negative habit from your life. If possible, resolve to take fewer trips to high-risk areas in the world or participate in safer hobbies such as tennis or hiking to lower your chances of a potentially fatal accident. If you think your physical health can improve, choose a healthier diet and build in time throughout your week to exercise.

We Can Help

If you are looking to purchase a life insurance policy, reach out to our professional agents and brokers for help online or call us at 413-538-7444. We will assess your personal needs and partner with you to provide the best policy for you and your family.