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Most people expect their age, job and amount of cover to affect the cost of Life, TPD, Trauma and Income Protection insurance.
Fewer people realise that how you live, your habits, health, work patterns and even your family history, can make just as much difference to the premium you pay and the terms the insurer offers.
Some factors you cannot change. Others you can improve with a bit of time and planning. Understanding the difference can help you get better cover at a fair price and avoid surprises during the application or at claim time.
This article explains some of the main lifestyle and personal factors insurers look at, and what you can realistically do about them.
Smoking and vaping
Smoking is still one of the biggest drivers of higher premiums.
Daily vapers are often treated the same as smokers, and smoker definitions also catch some nicotine replacement products. Because smoking is linked to higher rates of cancer, heart disease and other severe conditions, insurers usually charge substantially more for the same level of cover.
What you can change
If you have quit smoking or vaping, many insurers will consider you a non-smoker once you have been nicotine-free for 12 months. At that point, your adviser can often review your policy and apply for non-smoker rates, which can make a meaningful difference over the life of the cover.
Alcohol use
Insurers do not expect you to be alcohol free. However, heavy or frequent drinking can mean higher premiums, extra medical tests, or specific exclusions.
Underwriters will generally ask:
- How many standard drinks you have in a typical week
- Whether you tend to have big nights or episodes of binge drinking
- Whether there is any history of alcohol related issues, such as medical warnings, drink driving charges or rehab
What you can change
If you have already reduced your drinking and your health has improved, it is worth documenting this with your GP. An adviser can also help you describe your habits clearly, so a short-term rough patch in the past does not overshadow a stable pattern now.
Weight, diet and exercise
Body weight alone does not tell the whole story, but it is a key part of underwriting because very high or very low body mass index (BMI) is associated with increased health risk.
Insurers may focus on:
- Your current height and weight are used to calculate BMI
- Any history of high blood pressure, high cholesterol, diabetes or prediabetes
- Recent, unexplained weight changes
What you can change
Small, consistent improvements matter. Regular exercise, better sleep, and following medical advice for blood pressure or cholesterol can all help. If your health improves over time, an adviser can sometimes ask the insurer to review any loadings, that is, extra premiums, that were applied when you first took out the cover.
Family medical history
Family history is one factor you cannot change, but it still plays a role.
Insurers will often ask whether close relatives, usually parents and siblings, have had:
- Heart disease or stroke at a relatively young age
- Certain cancers
- Diabetes
- Serious hereditary conditions
The concern is whether there may be a higher underlying risk that has not yet shown up in your own health.
What you can influence
- Focus on controllable factors such as blood pressure, cholesterol, exercise, diet and sleep
- Keep up with recommended screening such as mammograms, colonoscopies and skin checks
- Make sure your GP records your current health status and test results clearly
Good personal health and up to date screening can sometimes mean a more moderate response from an underwriter, even when family history is not ideal.
Hazardous hobbies and adventure sports
Your weekend fun might look very different from an insurer’s point of view.
Activities that can trigger higher premiums or exclusions include:
- Skydiving, paragliding and hang gliding
- Rock climbing, mountaineering and caving
- Scuba diving beyond recreational depths or without recognised certification
- Motorsport, rally driving and frequent track days
- Private flying or aviation activities
By contrast, everyday sport, running, cycling and golf rarely cause concern.
What you can do
- Be specific about how often you take part, what level you are at, social or competitive, and what safety measures you follow
- If you have reduced or stopped a higher risk activity, make that clear, as it may allow for better terms or later review
Mental health, stress and time off work
Mental health is a standard part of modern underwriting. Insurers are not just interested in diagnoses; they look closely at stability and function.
They may ask about:
- Any history of anxiety, depression, burnout, PTSD or similar conditions
- Time off work due to mental health
- Hospital admissions or suicide attempts
- Your current treatment plan and supports, for example GP, psychologist, psychiatrist or medication
What you can do
- Seek help early and follow the recommended treatment plan
- Show that you are now functioning well, back at work, managing responsibilities, and supported
- Ask your treating doctor or psychologist for a clear summary letter setting out the history and current stability
Non-disclosure of mental health history can jeopardise a future claim, so it is essential to be open and let your adviser help you present the full context.
Work patterns, shift work and FIFO roles
Where and when you work also influence risk. Insurers may take a closer look at:
- Regular night shifts or rotating rosters
- Fly-in in fly-out roles and extended time at remote sites
- Physically dangerous or high-stress working environments
- Whether you work alone or in a well-supported team setting
What you can do
If you work in a higher-risk environment, it helps to provide:
- A clear job description showing what you do
- Evidence of safety training and procedures
- Any regular medical checks required by your employer
This gives underwriters more confidence that the risks are recognised and well managed.
Travel patterns and time spent overseas
If you regularly travel to countries that insurers classify as high risk due to political instability, conflict, or limited access to quality healthcare, this can affect both premiums and the scope of your cover.
Insurers will want to know:
- Which countries you visit
- How often you travel and for how long
- Whether your travel is for work or leisure
- Whether you are living overseas for extended periods
What you can do
If your travel habits change, for example if you move back to Australia or stop visiting higher risk regions, it may be a good time to revisit your insurance and see whether any restrictions or loadings can be reduced.
Recreational drug use
Insurers treat illicit drug use seriously. Depending on the circumstances, it can lead to higher premiums, specific exclusions, or declined applications.
They may ask about:
- The type of substance
- How often and how recently it was used
- Any history of dependence, rehab or legal issues
What you can do
If drug use is firmly in the past and your life is now stable, an adviser can help you explain that history in context. As with alcohol and mental health, honesty is essential to protect the integrity of any future claim.
Existing insurance and how much cover is reasonable
A final point that often surprises people is that existing cover can also affect new applications.
When you apply for new Life, TPD, Trauma or Income Protection insurance, the insurer will usually ask about all existing policies, including:
- Retail policies held directly with insurers
- Cover held inside super funds
- Group policies through employers
- Any smaller policies linked to loans or credit cards
They are looking at your total sums insured across all policies. If the overall level of cover, and especially income-based benefits, looks too high compared with your income, debts, assets and dependants, the new insurer may:
- Reduce the amount they are willing to offer
- Impose extra conditions
- In some cases, decline part of the application
If you plan to keep existing policies and add new cover, this needs to be factored into the strategy.
What you can do
- Tell your adviser about every policy you hold, including those inside super and any small covers you may have forgotten about
- Work with your adviser to decide which policies to keep, replace or consolidate, so the total sums insured can be clearly justified
- Be prepared for the insurer to ask for financial information, such as income and liabilities, especially at higher cover levels
Getting this right can avoid a situation where you pay for cover you do not really need and then find that a new policy is restricted because the overall level is not supported.
You do not need to be perfect, but you do need to be prepared
Very few people tick every ideal risk box. Most of us have had stressful patches, lifestyle ups and downs, or a family history we would not choose.
You do not need to present yourself as perfect. You do need to give the insurer a fair and accurate picture, so they can price your cover properly and so your policy is more likely to pay as expected when you or your family need it.
A practical approach is to:
- Understand what matters, the lifestyle and personal factors that influence premiums
- Improve what you can over 6 to 12 months, such as smoking, alcohol, sleep, exercise and stress
- Document your health with regular check-ups and appropriate screening
- Work with a qualified financial adviser who understands how different insurers treat different risks and can help you revisit your cover as your lifestyle changes.
Important: This article contains general information only. It does not consider your personal objectives, financial situation or needs. Consider speaking with a licensed financial adviser before making insurance decisions.
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The Money & Life website is operated by the Financial Advice Association (FAAA). The views expressed in this article are those of the author and not those of the FAAA. The FAAA does not endorse or otherwise assume responsibility for any financial product advice which may be contained in the article. Nor does it endorse or assume responsibility for the information.
