October 2006
Cut your premium by reducing risk
Term life insurance has become a big bargain in recent years, but you can save even more by taking steps to improve your health.
Here, ranked by the number of dollars saved with each lifestyle change, are 12 things you can do to boost your longevity and
estimates of how much each will pad your pocketbook over the life of an insurance policy.
Savings represent the dollar difference between the premium you’d pay over the term of the policy if you had the less healthful condition listed under “What you can do to reduce your risk” and the premium paid by our hypothetical policyholder, who is not overweight, has normal blood-pressure and cholesterol levels, doesn’t smoke or abuse alcohol, is a good driver, is not in the midst of bankruptcy, has never had any serious health conditions, doesn’t engage in certain hazardous hobbies such as piloting private planes or scuba diving, and whose parents and siblings have not been diagnosed with or died because of cardiovascular disease or cancer before age 60.
These quotes illustrate savings possible on a $1 million 20-year guaranteed level term premium policy for a 40-year-old, 5’ 10” man. Your savings will vary based on your age, build, health profile, and coverage. All quotes are from a July 2006 search for the best rates available, conducted for Consumer Reports Money Adviser by www.accuquote.com using its database of 150 underwriters, including the 10 most competitive.
Savings represent the dollar difference between the premium you’d pay over the term of the policy if you had the less healthful condition listed under “What you can do to reduce your risk” and the premium paid by our hypothetical policyholder, who is not overweight, has normal blood-pressure and cholesterol levels, doesn’t smoke or abuse alcohol, is a good driver, is not in the midst of bankruptcy, has never had any serious health conditions, doesn’t engage in certain hazardous hobbies such as piloting private planes or scuba diving, and whose parents and siblings have not been diagnosed with or died because of cardiovascular disease or cancer before age 60.
These quotes illustrate savings possible on a $1 million 20-year guaranteed level term premium policy for a 40-year-old, 5’ 10” man. Your savings will vary based on your age, build, health profile, and coverage. All quotes are from a July 2006 search for the best rates available, conducted for Consumer Reports Money Adviser by www.accuquote.com using its database of 150 underwriters, including the 10 most competitive.
| If you take action | If you do nothing | |||
|---|---|---|---|---|
| Rank | What you can do to reduce your risk | Savings | Rate class | Lowest annual premium |
| Nothing. You're in great shape! | NA | Preferred Plus | $630 | |
| 1 | Quit smoking cigarettes (3-plus yr.) | $42,000 | Preferred (smoker) | 2,730 |
| 2 | Drop 100 lb. (to 185) | 29,400 | Table 2 | 2,100 |
| 3 | Cut cholesterol 80-plus points AND HDL ratio by 3 points with meds (cholesterol to 220 or lower; HDL ratio to less than 5.0) | 17,800 | Standard | 1,520 |
| 4 | Cut blood pressure 15/10 points with meds (to 140/85 or lower) | 15,400 | Standard | 1,400 |
| 5 | Drop 50 lb. (to 185) | 15,400 | Standard | 1,400 |
| 6 | Quit smoking a pipe or cigars regularly (3-plus yr.) | 15,100 | Standard Plus (non-tobacco) | 1,385 |
| 7 | Stop driving drunk and recklessly (no violations in the past 5-7 yr. with a good explanation, and no more than 1 moving violation) | 15,100 | Standard Plus | 1,385 |
| 8 | Cut cholesterol 30-plus points AND HDL ratio by 2 points with meds (cholesterol to 220 or lower; HDL ratio to less than 5.0) | 12,600 | Preferred | 1,260 |
| 9 | Cut borderline high blood pressure to 140/85 or lower with meds) | 4,600 | Preferred | 860 |
| 10 | Drop 20 lb. (to 185) | 4,600 | Preferred | 860 |
| 11 | Quit occasional cigar smoking | 1,200 | Preferred Plus | 690 |
| 12 | Get bankruptcy discharged or have a good explanation | 1,200 | If in the midst, often uninsurable; if available, individual consideration | 690 |
