While it is not possible to predict an unfortunate event, it is certainly possible to be prepared for one. That is why a prime financial advice for individuals and families alike is to safeguard their finances and their futures by making the most of a dependable life insurance policy. That being said, for most people, traditional life insurance policies tend to pose one major, specific challenge - the high cost of its premiums.
In response to this dilemma, a better alternative surfaces in the form of term insurance. The best term insurance policies essentially offer the same features and coverage as a life insurance policy, but with one significant advantage. Term insurance premiums are known for being low cost and economical, making insurance an accessible option for many.
However, not all term insurance policies are the same. There is, of course, considerable difference between the term insurance plans being offered, which ranges from insurer to insurer. But apart from this, even with the same insurer, term insurance policies can differ greatly from one policyholder to the next.
Some of these differences can be accounted for by the policyholder’s choice of tenure or premium amounts. But some of these differences boil down to how much of a risk is posed by the policyholder to the insurer. It goes without saying that the higher the risk an individual poses to the insurance company, the greater their liability, and hence the higher the cost of the policyholder's term insurance premiums.
Therefore, if there are lifestyle habits that an individual indulges in and that have a direct impact on his health, these habits directly impact his term insurance premiums as well. In particular, let us take a close look at the impact that common habits such as drinking and smoking have on one’s term insurance premium costs.
While drinking alcohol in moderation is considered acceptable, excessive drinking can prove to be a grave matter of concern for potential insurers. Drinking in excess has been linked to conditions such as high blood pressure, liver and kidney diseases and coronary diseases. It can also result in mental health conditions as well as issues with substance addiction
Therefore, while evaluating your eligibility for the best term insurance policies, your alcohol consumption plays a huge part in determining your premiums. If your regular alcohol consumption exceeds a certain standard, this can reflect in your medical records as well. It will also directly increase your term insurance premiums as you become a greater risk for potential insurers.
According to medical research, long term smoking has been linked to higher risks of developing conditions such as various forms of cancer, respiratory diseases, stroke and cardiovascular illnesses. Moreover, as per the World Health Organisation, the habit of smoking can contribute to the deaths of about half of the individuals who indulge in it.
In the face of such scientific evidence, smokers are typically charged higher term insurance premiums than their non-smoking counterparts. While higher, these premiums can still fall within reasonable amounts, although it is advised to reconsider one’s smoking habits to maximise the benefits of your term insurance.
A person’s term insurance cost can also be affected by how frequent a smoker he or she is. For instance, if an individual is in the process of quitting smoking, he can inform the insurer about the same and avail certain considerations. The insurer might even offer to reconsider your policy after a few years whereby you might be able to revise your term insurance premium amounts after quitting smoking for good.
If you do not smoke or drink, the best term insurance providers are certainly likely to offer term insurance to you at lucrative term insurance premiums. However, even if you do have these lifestyle habits, you can still make the most of your term insurance by signing up with the right, reputable insurer.
To that end, you can consider availing the iSelect Smart360 Term Plan from Canara HSBC Oriental Bank of Commerce which offers extensive coverage at affordable premium rates. With the iSelect Smart360 Term Plan, you can also avail of a variety of covers to suit your needs, such as accidental death/disability benefit, child support benefits and more. You can choose between three types of coverage: increasing, decreasing or level cover, as per your current needs and future goals.