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Protect your future with life insurance
04 July 2007 15:16:55
According to Eugene C Gordon, CEO of US life cover provider LifeQuote, protecting your family's future could be one of the most important decisions you ever make.
Speaking at the launch of Life Insurance Awareness Month in Miami, Florida yesterday, Mr Gordon said:
"Death is a topic of conversation most families avoid but having life insurance (term life insurance) coverage could someday prevent a financial tragedy."
Yet according to November 2006 research by UK insurer Bright Grey, only 53 per cent of British adults have any form of life insurance cover.
With life insurance premiums falling steadily over the past few years, as medical advancements increase life expectancy, there's only one road to take when thinking about your family's future and that's ensuring that in the event of your death, they'll be able to survive financially.
Of course, your own lifestyle is likely to affect the cost of your insurance premium, so getting into shape can help your wallet as well as your health.
Jonathan French of the Association of British Insurers (ABI) recently explained the benefits of pursuing a healthy lifestyle, confirming that "lifestyle factors in general play a part in the assessment that insurance companies do on people when they apply for life or protection insurance".
Many insurers assess the potential risks associated with a policyholder by measuring their Body Mass Index - Mr French confirms that "factors like obesity will be taken into account".
Quitting smoking in the wake of the new ban could also save you money, as well as improving your life expectancy.
However, many insurers will only lower premiums if the policyholder has steered clear of the evil weed for a protracted period, likely to be at least six months.
But if you're serious about giving up cigarettes, you're likely to notice the benefit in both your fitness and your bank account.
A recent survey from advice website find.co.uk revealed that kicking the habit could save you around £64 per year in life insurance costs.
While a 35-year-old male smoker would pay around £13.50 per month for a 20-year level term policy with an assured sum of £100,000, a non-smoker would pay £8 every month - this adds up to a saving of almost £1,300 over the 20-year term.
Mr French confirmed that insurers are unlikely to turn away applicants for life cover if they are obese or smoke, but added that making lifestyle changes would certainly prove beneficial.
"One important thing that people should remember is," he said, "if, when they applied for their insurance policy, there were lifestyle factors which they had declared, like obesity, and…those individuals make lifestyle changes which reduces obesity, for example, then if they let their insurance company know that then there is likely to be a reassessment of premiums, which doesn't happen the other way round."
"The policies are underwritten at the point of application not at the point of claim."
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