How Your New Year’s Resolutions May Help You To Reduce Your Life and Disability Insurance Premiums in 2011

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Happy New Year!

Topping the list of New Year’s Resolutions is typically weight loss and smoking cessation. In addition to the health benefits to these changes, they may help you save money on your life and disability insurance premiums, too.

1) Quit Smoking. Smokers pay approximately 30-40% more on their life and disability insurance premiums. If you currently have a policy and are paying smoker rates and have quit smoking, you may be eligible to apply to reduce your rates. Most companies require you to have quit smoking for at least 12 months. At this time, you can submit a policy change application. The company will review your insurability at this time and determine if you are eligible for the nonsmoker rates. Once you have nonsmoker rates on the policy, they will remain for the duration of the policy. Please note that if you have had any adverse changes in health, this may not be beneficial to you as they will ask you your entire medical history.

 2) Weight Loss. If you were overweight when you applied for your life or disability insurance, your policy may have been rated resulting in higher premiums. If you have since lost a significant enough amount of weight to move you into a more favorable category, you may want to apply to reduce your current rates. Find out from your company the height/weight tables to first determine eligibility. Most companies will require that you not only lose the weight, but keep it off for at least 12 months. The company will review your overall insurability at this time and determine if you are eligible for the more favorable rates. Once you the less expensive rates on the policy, they will remain for the duration of the policy. Please note that if you have had any adverse changes in health, this may not be beneficial to you as they will ask you your entire medical history.

 For more information, please contact the Set for Life Insurance office today.

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