Written by Jamie K. Fleischner, CLU, ChFC, LUTCF, President of Set for Life Insurance by KF Financial, Inc.
It’s 2010. This year represents a new year and a new decade. Is this the year of a new you, too? Perhaps at the top of your list is losing weight or quitting smoking. Here is more incentive-it may also reduce your premium rates on your life and disability insurance.
When you apply for life and disability insurance, your rates are based on your health and risk criteria. People who smoke pay 20-30% more on their insurance premiums. People who are overweight also pay more for their insurance.
But here is the good news. If you already have a life or disability policy that was rated due to smoker rates or due to build, you may apply to reduce those rates after the policy has been in force for one year. This would require new medical underwriting. Therefore, if you health situation has worsened since you took out your policy, it wouldn’t make sense to go through underwriting. However, if your health has improved, the company may reduce your rates. Once the rates have changed, the company can never increase them again in the future.
If your goal is weight loss, some companies may want to see the weight off and stay off for a period of 6 months to a year. Check with the company first. If you lost weight last year and were previously rated, you may want to send in an application for reconsideration.
Dr. Jason G. of Atlanta, GA lost 50 pounds last year. “I couldn’t believe that I not only was able to lose the weight, but I saved a significant amount on my insurance premiums. I was able to increase my insurance protection while reducing my overall premiums. It was mind-boggling.”
For more information, please contact the Set for Life Insurance office.