Life cover premiums are determined by insurers by taking into account your qualifications, smoking habits, age and other factors. There are however, a number of factors within your control to reduce your premium.

We unpack the actions you can take to reduce your life cover premiums. If any of the following factors change in your life, be sure to inform your financial advisor so your premium can be reviewed and potentially reduced:


  1. Smoking status

Smokers’ life cover premiums are loaded since they are at a higher risk of health issues. If you quit smoking, it is important to inform your financial advisor to arrange with the insurer to amend your premium accordingly.


  1. Body Mass Index (BMI)

When applying for life cover, insurance companies consider your BMI, which is your body mass divided by the square of your height. If your BMI has changed significantly over the past year or if it is very high or low, the insurer could load your premium and even decline your application for cover completely.

If, for example, your BMI was very high at the time of your policy’s inception and you lose weight by becoming more active a year or more thereafter, it is worth informing your advisor to ensure your premium is reviewed.


  1. Covid-19 vaccination

Even though it is a sensitive topic at the moment due to various opinions, insurance companies are however applying loadings to premiums of individuals who have not been vaccinated. If you are unvaccinated at the time of applying for cover and ever do decide to get vaccinated in future, this could reduce your premium if you inform your insurer and provide proof of vaccination.


  1. Qualifications

If at any point you complete a higher qualification than at the time of applying for life cover, this could have a big impact on your premium. For example, if you had a diploma and finished a degree a few years later, ensure that your insurer is aware so that your premium is reviewed.


  1. Salary

Should your salary increase significantly and your insurer is informed, your premium will be impacted. It is also beneficial to inform the insurance company of your spouse’s salary which indicates that there is a second income in your household.

Since everyone’s circumstances are different, factors like age and occupation are not always within our control. However, the above-mentioned habits that are related to health, are things that we have the power to change.

If any of these habits or factors have changed since your life cover policy’s inception, inform your financial advisor to have your life cover premium reviewed so that you do not contribute more than you should.