*Updated October 14th, 2025
Okay, we all know that insurance underwriters use actuarial tables to assess risk factors and set insurance premiums for each applicant. When it comes to life insurance, the higher your risk of dying early, the more expensive your coverage will be. The good news: there are risk factors you can influence that improve your health and save money on life insurance.
Why your life insurance premiums rise (and how saving money is possible)
Rates are based on factors like age, health status, nicotine use, and the amount of coverage you choose. Improving modifiable risks and picking the right types of life insurance can help you save money without sacrificing protection.
Lose Weight to lower your premium
If you’re overweight and want to improve your health, lower your risk factors, and save on life insurance, shedding pounds will help with all three. We believe people are valuable at every size—but maintaining a healthy weight can reduce blood pressure and cholesterol, lowering the cost of life insurance. Better numbers may mean lower your life insurance premiums with many insurance providers.
Healthy habits that may help: regular exercise, a balanced diet, and working with your doctor on medical conditions that affect body mass index.
Quit Smoking to cut life insurance costs
Another act of self-improvement that can lower insurance costs is quitting smoking. If you compare quotes as a smoker vs. non-smokers, you’ll see higher premiums for nicotine users. Kick the habit, and you could see lead to significant savings over time.
Tip: Some life insurance policies re-rate after 12 months tobacco-free so you might save sooner than you think.
Pick the right policy: term life insurance vs. permanent life insurance
Many families want affordable life insurance that protects loved ones during high-need years. Buy term life (coverage for a specific period) if you need a larger death benefit at a lower cost—great for paying off your mortgage or raising a dependent/beneficiary. If you want coverage that lasts your whole life, consider permanent insurance—but know that extra features come at a price.
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If you don’t need life insurance beyond a set horizon, term policies/term life insurance policies can lower the cost while providing the coverage amount you actually need.
Right-size your coverage (don’t buy coverage than you need)
Match your life insurance coverage to income replacement, debts, college plans, and years needed. Too much coverage increases your premium; too little under-protects those you love. A good insurance agent can help you find the best balance for peace of mind.
Shop the market and save money on life insurance
Rates vary across insurance companies. Shop around with multiple life insurance providers or use an insurance agency to compare. You may potentially save money with preferred health classes, electronic applications, or by bundling with home or auto insurance.
Live well to qualify for better rates
Underwriting rewards maintaining a healthy lifestyle. Improve your health markers by managing alcohol consumption/excessive alcohol consumption, sleep, and stress; keep preventive visits; and help you stay healthy long-term. These steps benefit personal finance and can benefit your finances via lower premiums as you age and become eligible for better classes.
Have questions about life insurance?
If your current policy feels expensive, ask about a re-rate, switching insurance products, or whether you may qualify for a different class after lifestyle changes. A seasoned pro can show ways to save money that save you money today.
Bottom line
Work on self-improvement where it counts—quitting smoking and maintaining a healthy weight—while choosing the right policy structure. Combine that with smart shopping and right-sized coverage, and you’ll reduce your life insurance costs and help employees—err, help yourself—save money on life insurance while you protect your loved ones in the event of your death.