Actions to avoid when Shopping for Life Insurance

Actions to avoid when Shopping for Life Insurance

"It sounds morbid, but when you’re shopping for a life insurance policy, insurers want to know the answer to one question: What’s your life expectancy?"

Life expectancy is important because life insurers take on a financial risk by covering you. The higher the chance of an insurer having to pay out your policy, the more you’ll pay and the more difficult it will be to get coverage. There are some actions and behaviors to avoid when shopping for life insurance.

Market Watch’s recent article entitled“5 reasons you might have to pay more for life insurance” says that if you fall into one of the following groups, you may be deemed a high risk for life insurance.

  1. You have a pre-existing health condition. This is something such as cancer, diabetes and any type of autoimmune disorder. Morbid obesity is a big risk. However, if you’re managing your pre-existing condition well, insurers will consider that when setting rates. That’s because the more controlled your health risk is, the more favorable it is for your own mortality. That is good for everybody involved. It is a “win-win.”
  2. You work a dangerous job. If you work in a risky workplace, you’ll be treated differently from someone with a desk job. The list of “dangerous” jobs is based on specialized tasks. However, if leave your hazardous job, you can ask your life insurance agent to re-evaluate your rates.
  3. You’re a daredevil If you enjoy the thrill of extreme sports, like car racing, piloting, skydiving, scuba diving, or mountain climbing, you’ll likely have higher life insurance rates. Insurers will consider the level of risk you’re taking and how frequently you participate in these activities.
  4. You’re receiving drug or alcohol treatment. The type of drug and the length of time you’ve been clean play a part. Insurance companies look carefully at relapse rates, as well as the likelihood of contracting diseases through drug use, like hepatitis C.
  5. You have a recent DUI. A DUI is more than a blip on your driving record. It can also impact your ability to get low-cost life insurance. If you received a DUI in the past year, you could expect a higher premium when you apply for life insurance. If you have multiple DUIs over five years ago, you’ll likely pay more than twice as much for coverage as someone with a clean driving record. However, the insurance company may not penalize you for just one DUI that happened five or more years ago.

Actions to avoid like these when you are shopping for life insurance can increase your chances of approval. Make sure to work with a life insurance broker or independent agent. They partner with a number of life insurance companies, so they can help you navigate your options. If you would like to read more about life insurance and estate planning, please visit our previous posts. 

Reference: Market Watch (Jan. 25, 2022) “5 reasons you might have to pay more for life insurance”

Photo by Andrea Piacquadio


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Information in our blogs is very general in nature and should not be acted upon without first consulting with an attorney. Please feel free to contact Texas Trust Law to schedule a complimentary consultation.
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