The purpose of life insurance is to manage risk. Individuals and families need protection in the event a primary bread winner passes away.
Several factors drive what life insurance costs for an individual. Women tend to live longer, so their cost for life insurance is lower than it is for men. The healthier a person is, the less expensive it is for them to obtain life insurance. People who smoke pay significantly more for life insurance.
Each person’s health situation is unique. Part of the process of obtaining life insurance is to collect medical samples for testing. The underwriter reviews records from your doctors over the past 5 years. They also examine driving records.
Once all of the information is collected the underwriter evaluates the data at hand and assigns the insured person a health rating. The better the rating, the lower the premium you pay.
So how much of an impact do health issues have on a person’s ability to afford life insurance?
Assuming the insured lives in Pennsylvania and is applying for a 20yr level term policy with a death benefit of $500,000. Let’s examine a few hypothetical examples.
First, lets compare 2 women who are 5’6” and have the same health profile, but the only difference being woman A weighs 164 lbs., and woman B weighs 190 lbs. Woman A is rated “elite” and her policy costs $235/yr. Woman B is rated “preferred” and her policy costs $375/yr. The result is a 59% increase in the cost of protection.
In the next example lets use the same 2 women as described above but let’s assume woman B has a major health condition, such as early stage diabetes. As a result, instead of woman B’s rating being “preferred” it is now reduced to “non-smoker”. Her cost of insurance for the same policy described above goes up to $445/yr. This is 89% higher cost compared to woman A who was rated “elite”.
Why is woman B rated “non-smoker” more expensive? Because statistically due to her health issues she is more likely to pass away and have the policy pay out its death benefit sooner, compared to someone rated “elite”.
In a last example, let’s assume woman B smokes cigarettes. As a result, she is rated “smoker standard” and her premium for the policy described above is $1090/yr. Her premium is 363% higher than woman A due to smoking. Why? Because there are significant health issues caused by long term cigarette use.
Over time a person’s health can have a major impact on their financial security. Having poor health and not having life insurance can put a person’s family at risk when the person passes away. Having poor health, but obtaining life insurance can help protect the family from the loss of a primary breadwinner, but there is a cost associated with that protection. Having good health AND having life insurance is both cost effective and sensible from a protection standpoint.
We all can utilize a variety of practices to improve our health. Diet, yoga, and exercise… prevention and proactive strategies can add years to our life expectancy and reduce the expenses to protect our families. Financial security is more likely to result from good health.
So what is a good first step?
diet, fiber and cancer
The inclusion of fiber in the diet of an individual has been linked to a variety of health perks for decades. Most experts recommend at least 25 grams per day for women and 38 grams for men, yet many adults in the United States barely reach half that goal. It is generally the case that people’s diets are very poor in fiber; most Americans only consume around 15 grams of fiber daily, which falls short of recommended amounts.
A recent study in the journal “Nature Metabolism” shows that fiber has a major impact on the chemical processes that may lead to the development of cancers.
“We found a direct link between eating fiber and modulation of gene function that has anti-cancer effects,” said Michael Snyder, Professor of Genetics at Stanford University.
Fiber comes in many forms, from the crunchy stems of leafy greens to the chewy shells of beans and nuts. Dietary fiber travels to the large intestine, where friendly bacteria feast on it creating positive effects for gut health.
Adjusting meal plans to include foods like beans, nuts, cruciferous vegetables, or avocados may promote the production of more of these beneficial acids, potentially offering some defense against abnormal cell growth that manifests as cancer.
Cancer often begins when cells lose their usual checks and balances. When those processes go haywire, mutated cells can survive too long or multiply too fast. The study in “Nature Metabolism” uncovered how certain chemical markers on genes for cell regulation might be switched on in a protective way when these short-chain fatty acids that are a result of fiber are plentiful.
A diet that skimps on fiber starves the microbes that produce these beneficial fatty acids. That could leave you short on important chemical signals that appear to help keep cancers at bay.
According to the CDC, in 2021 cancer was the second leading cause of death in the United States killing more than 605,000 people.
A plant-based diet that includes whole grains, nuts, seeds, and legumes remain top options for boosting your daily fiber count, and your defense against cancer. Vegetables like Brussels sprouts and broccoli, as well as fruits such as raspberries, also offer generous amounts.
By managing your health and diet, you reduce the health risks for your body, lower the long term expense of life insurance protection and improve your longevity.
To learn more reach out to me at james.cox@glic.com.
Retirement Income. Tax Efficient Planning.
Life Insurance. Disability Insurance
Socially Responsible Investing
Contact information:
PAS, 150 South Warner Rd. Ste. 120 King of Prussia, PA 19406
Phone 267-323-6936
James.cox@glic.com
Material discussed is meant for general informational purposes only and is not to be construed as a recommendation or advice. Please note that individual situations can vary therefore, the information should be relied upon only when coordinated with individual professional advice. The examples provided are for illustrative purposes only. Life insurance is subject to underwriting and individual situations will provide individual results. This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 150 S. Warner Road, Suite 120, King of Prussia, PA 19406 (610)293-8300. Securities products and advisory services offered through PAS, member FINRA, SIPC. PAS is a wholly owned subsidiary of Guardian.
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1. https://www.earth.com/news/eating-enough-fiber-prevents-cancer-in-a-surprising-way/
2. https://www.healthline.com/health/leading-causes-of-death