Want to Pay Lower Premiums for Life Insurance on your Mortgage? Make a few changes.

Drop that cigarette right now, if you know what’s good for your finances.

Tobacco use is a major factor insurance companies look at when they assess your premium. How big is the gap between premiums? In one account, a smoker’s policy costs $135 a month, while a nonsmoker’s costs $70. The good news is most insurance companies only require you to quit smoking for one year to qualify for non-smoking rates. Forbes’s Kate Ashford reports on this and other factors that can really add to what you will pay for life insurance.

Life Insurance

Health and Lifestyle

Some things that affect your insurance premiums cannot be addressed or overcome, like family history or sever illness and disease. I like to concentrate on things you can change like health and lifestyle choices. These include tobacco use, your weight, your driving record, dangerous hobbies. And even your occupation. Even if you only change a few of them, they can have a positive effect on your life expectancy and because of that, your life insurance premiums will potentially be reduced.

Obesity

This medical condition is as much of a problem in Canada as it is in the U.S., with over a third of Canadian adults sporting larger midsections as of 2012. To be considered overweight, a person’s body mass index (BMI) must be between 25.0 and 29.9. To be considered obese, one’s BMI must clock in at 30.0 or higher.

While BMI is only one of several risk factors, experts say the corresponding insurance premium increase it poses is significant and can result in insurance applicants being outright declined for coverage. This can be very serious for a family that is looking for quality life insurance on the mortgage. This type of insurance plan ensures that your mortgage gets paid off in the event one of the income earners in a family is no longer there to provide.

Barring serious illnesses, it is not too late to rebuild your health. It may take a while, but the potential savings on insurance premiums are worth the effort. You can consult a trusted life insurance broker like Insurance Advantage to learn more about qualifying for the best mortgage life insurance plans.

(Source: 13 Times When Life Insurance May Cost More, LearnVest [c/o Forbes], February 28, 2014)