Understanding Risk: How Certain Youth Behaviors Can Impact Life Insurance Premiums
While earlier I stated that younger individuals are often less likely to engage in risky behaviors, it's important to clarify that this is relative to those behaviors that can increase with age, such as unhealthy diets, lack of exercise, or alcohol abuse. However, there are certain behaviors that some younger individuals might engage in that can be deemed risky by insurance companies. Here are a few examples:
Reckless Driving: Younger individuals, especially teenagers and people in their early twenties, might be more prone to reckless driving due to inexperience or a sense of invulnerability. This includes speeding, not wearing seat belts, or driving under the influence.
Substance Use: The use of recreational marijuana, illegal drugs or excessive alcohol consumption can be more common in some younger demographics. These behaviors can lead to health issues, accidents, or legal problems, all of which could potentially impact life insurance premiums.
Extreme Sports or Dangerous Hobbies: Younger individuals might be more likely to participate in extreme sports like rock climbing, skydiving, or motor racing. These activities carry a higher risk of injury or death, which can increase life insurance premiums.
Travel to High-Risk Locations: Traveling to places with high levels of political instability, violence, or disease can be seen as risky behavior by insurance companies.
Vaping/Smoking: Although vaping/smoking is a behavior that can affect individuals of any age, starting at a young age can lead to long-term health issues that can impact life insurance premiums.
It's always best for individuals to disclose these behaviors when applying for life insurance, as failure to do so can result in a claim being denied later. It's also worthwhile noting that while these behaviors may increase premiums, they don't necessarily disqualify someone from obtaining life insurance.
