Haris Ashley
When applying for life insurance, you'll likely be asked to complete a questionnaire about your health, lifestyle, and family medical history. Insurers use this information to assess your risk of falling ill or dying. While your personal health profile is a bigger factor, your family medical history can still impact the cost of your life insurance premiums. If a pattern of health conditions exists in your family, the insurer may investigate further, potentially leading to higher premiums or even denial of coverage. Being honest on your application is crucial, as lying or omitting information can invalidate your policy.
| Characteristics | Values |
|---|---|
| Personal health history | A bigger factor than family history in determining the cost of life insurance |
| Family health history | Can impact the cost of life insurance |
| Age | The younger you are, the lower the premiums will be |
| Lifestyle habits | Smoking, drinking, exercise, hazardous activities, contact or extreme sports |
| Mental health | History of stress, depression or anxiety |
| Medical history | Serious health conditions, surgeries, prescription medications |
| Medical examination | Blood pressure, heartbeat, height, weight |
What You'll Learn
Family history of serious illness
When applying for life insurance, you will be asked to complete a questionnaire about your health and lifestyle. This will include questions about your personal medical history and your family's medical history.
If you have a family history of serious illness, this could impact the cost of your life insurance premiums. Insurance underwriters will consider how many members of your family have suffered from a certain condition and how early in life they were diagnosed. If a diagnosis came after the age of 60-65, this might be less of a concern for insurers. Usually, they will only be interested in your closest relatives, meaning your biological parents and siblings.
The impact of a family history of serious illness on your life insurance premiums will depend on the specific condition and the insurer. Some insurers might increase your monthly payments, while others might offer cover but exclude certain conditions from the policy. In that case, the insurance would only pay out if the excluded condition was not the cause of death.
It's important to be honest about your family's medical history when applying for life insurance. Insurance companies have access to your medical records, and if they discover any missing or false information, they may increase your premium or even deny your application altogether.
- Cancer (including breast cancer, colon cancer, lung cancer, melanoma, and prostate cancer)
- Heart disease
- Kidney disease
- Diabetes
- Neurological conditions (including motor neurone disease and Parkinson's disease)
- Alzheimer's disease
- Amyotrophic lateral sclerosis (ALS)
- Huntington's disease
- Mental health issues (such as depression or anxiety)
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Personal health history
When applying for life insurance, you will be asked to complete a questionnaire about your health and lifestyle. This will include questions about your smoking and drinking habits, whether you have suffered any serious health conditions or had major surgery, and your mental health history.
Your personal health history is a significant factor in determining the cost of your life insurance. If you have a history of serious health conditions, you may have to pay higher premiums. This is because insurance companies use your health profile to assess your future health risks and how likely you are to make a claim.
Insurers will also be interested in your family's medical history to establish the likelihood of you suffering from inherited conditions in the future. They will want to know about the health issues experienced by your close biological family members, such as your parents and siblings. Conditions of interest include cancer, neurological conditions, motor neurone disease, Huntington's disease, and more.
If a pattern of health conditions exists in your family, such as a history of breast cancer in female relatives, this could signal to the insurer that further investigation is needed. They may request an Attending Physician Statement to better understand how your family's history might relate to you. This will likely extend the time it takes to receive a final rate or decision on your eligibility. However, it does not necessarily mean you cannot qualify for the best pricing for your age.
Remember that your age and current health are the most important factors when it comes to reporting your family's medical history on a life insurance application.
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Age
The premium amount typically increases by about 8% to 10% for every year of age, although this can be as low as 5% annually if you're in your 40s, and as high as 12% annually if you're over 50. With term life insurance, the premium is established when you buy the policy and remains the same every year. With some permanent life insurance policies, the premium rises annually.
The bottom line is that the older you are, the more likely your passing becomes, and with that higher risk comes higher premiums. Therefore, it is generally recommended to purchase life insurance when you are younger and healthier, as this will result in lower premiums.
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Lifestyle characteristics
When applying for life insurance, you will be asked about your lifestyle characteristics, including:
- Whether you smoke or drink and how much
- Your height and weight
- Your exercise habits
- Your driving record
- Whether you participate in any extreme sports or hazardous activities
- Whether you have any risky hobbies, such as rock climbing or skydiving
These factors can influence your life insurance premium. For example, quitting smoking, losing weight, and reducing alcohol consumption can lower your premium. Improving your driving record can also help, as insurance companies may increase your premium if you have multiple moving violations.
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Pre-existing conditions
When you apply for life insurance, a pre-existing condition might be any health problem that could affect your longevity, and each insurer qualifies them differently. Some common examples of pre-existing conditions include high blood pressure, diabetes, cancer, and asthma. Previous injuries might also be considered pre-existing conditions, depending on their severity and any lasting effects.
If you have a pre-existing condition, you can take several steps to increase your chances of getting life insurance and securing more favorable rates. Firstly, it is important to follow your treatment plan and manage your condition effectively. Demonstrating vigilant management of your condition, such as routine medical provider visits and regular medication usage, can reduce the risk from the insurer's perspective. Regular exercise and maintaining a healthy weight can also improve your overall health and reduce the risks associated with your pre-existing condition.
Additionally, shopping around and comparing quotes from different insurers can help you find companies that are more accommodating to your specific condition. Working with an insurance broker can also be beneficial, as they specialize in helping clients find life insurance and can advocate on your behalf.
It is crucial to be honest and transparent about your pre-existing conditions when applying for life insurance. Providing accurate information and obtaining the necessary medical examinations will ensure that you are properly insured and avoid issues with your policy in the future.
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Frequently asked questions
Insurers take many factors into account when deciding your life insurance costs, including your medical record. They will ask about your health and lifestyle, including whether you smoke or drink, and how much, and whether you have suffered any serious health conditions, past or present, or had major surgery. They will also be interested in your mental health history.
You should tell your chosen insurer about any relevant medical conditions before you buy the policy. If you don't declare medical conditions and it's established that you were aware of them when you applied, the insurer could refuse to pay out.
It can be quite easy for an insurer to check and if you are found to have lied, even by omission, this will invalidate your insurance and it won't pay out.
If you don't know your biological family's medical history, perhaps because you are adopted or no longer in contact with them, your family's medical history won't be included in your health profile. You should answer the questions on the application form to the best of your knowledge.
