Life Insurance for Runners

Running is one of the most accessible forms of exercise in Canada and also be one of the healthiest, particularly for improving cardiovascular health. Numerous studies show that running improves both physical and mental health — but that’s not all. Your love for running can also pay off in an unexpected way: paying less for life insurance.

In this blog post, we'll cover what you need to know about life insurance for runners.

Key Takeaways:

• Running itself may not lead to cost savings when you apply, but the health benefits it provides may lead to lower life insurance premiums.
• Two main life insurance plans for runners are term life and whole life.
• Premium rates vary by insurance companies, so shop around to get the best deal.

Understanding Life Insurance for Runners

Life insurance pays money to your beneficiaries when you pass away. It provides you with peace of mind knowing that your family members will be financially looked after in the event of your death.

The death benefit is usually paid out in a lump sum, but your beneficiary can choose to receive it in regular installments. The death benefit amount depends on the level of coverage you purchase.

Some life insurance policies last for a fixed term selected by you, such as 10 or 20 years. These policies are referred to as term life policies. Other policies don’t come with an expiry date, lasting as long as you live, or need life insurance coverage. Many permanent life insurance plans also double as an investment tool, helping you save money for retirement, a big purchase, or a financial emergency.

Do Runners Get Better Life Insurance Rates?

If you run regularly, you might be wondering: Can it save me money on life insurance premiums? The answer is yes, it's possible.

However, it is not simple. Insurers, or the insurance company, are concerned not so much about your exercise habits as your overall health. That said, because running improves your health, it may indirectly help you secure lower rates on life insurance.

Runners often score well on some of the parameters — BMI, cholesterol, blood pressure — underwriters use to evaluate someone’s risk profile. For instance, running reduces the risk of high blood pressure by more than 4%. Runners also have up to 35% lower risk of all-cause mortality. Another study found that running four to five miles a week lowers the risk of death from heart problems by a whopping 45%.

It is these health benefits that impact your premiums, not running in and of itself.

If you enjoy running, are in good health, practice healthy eating habits, and have no history of cancer or heart disease in your family, you will likely qualify for a better rate. However, running alone is not enough to help you secure the lower premium rate you may be hoping for. Maintaining a healthy lifestyle overall is crucial.

Let’s take a quick look at how underwriters group applicants into different health classes and where runners generally fall to better understand how running can impact your insurance costs.

Health Classifications for Life Insurance

• Preferred Plus: This is the best health classification you can receive in health insurance. People who are rated as Preferred Plus receive the lowest life insurance premiums. Typically, the rating is assigned to applicants with a BMI of 18-29 and who have no serious underlying conditions. Many runners can qualify for Preferred Plus, provided their overall health is good and they don’t have a family history of cancer or heart disease.
• Preferred: Applicants with a Preferred rating have the second-lowest premium rates. To qualify, your BMI should not be over 31, and you should not have any serious underlying health conditions or any deaths in your immediate family due to cancer or heart disease. Because running improves overall health, many runners are eligible for the Preferred rating.

• Standard Plus: The next health rating is Standard Plus. The life insurance companies offer these classifications to applicants who are slightly overweight (BMI upper limit is 32 or 33) and have mild-to-moderate health conditions that are well controlled. You can qualify for this rating even if your family’s medical history is less than perfect. Applicants with the Standard Plus rating pay higher premiums than those with the Preferred Plus or Preferred rating.
• Standard: This rating comes with the fourth-lowest premium rates. It is assigned to applicants who are overweight, have an average or slightly less-than-average life expectancy, and/or have a family history of cancer or heart disease.
• Sub-standard (Table) Ratings: Table ratings are assigned to applicants who are insurable but do not meet the criteria for any of the four health classifications listed above. People with a Table health classification are severely overweight or obese and/or have one or more serious health conditions. Table ratings are numbered 1 to 16 or A to P, and each rating adds an extra 25% to the Standard premium rate. Thus, a table rating B means a standard rate plus 50%, a C rating means a standard rate plus 75%, and so on.

Why Running Regularly Doesn’t Necessarily Mean You’re Healthy

Many runners confuse being able to run a marathon or half-marathon with being healthy, but health insurance companies know this isn’t always the case.

Life insurance providers don’t have a specific risk class in which runners receive the lowest possible rate. This is because even if you are able to sprint or run long distances, your lifestyle could be unhealthy. For example, some runners might have unhealthy eating habits, which could lead to elevated cholesterol levels — a definite red flag for insurance carriers.

It’s also possible to have other red flags on your report despite being physically active. For instance, if you have had a heart attack in the past, insurers may be reluctant to offer you a Preferred Plus or Preferred health classification.

There are also factors beyond your control. For example, a family history of cancer or heart disease will probably override the fact that you exercise regularly.

All the same, even if running alone is unlikely to lead to lower life insurance costs, it is beneficial to share this information when applying for coverage. Many insurers include a question on their application form asking whether you are physically active. Use this opportunity to inform providers that you run regularly. It can only help.

Family History and Other Factors That Affect Life Insurance Rates

Aside from an active lifestyle, the following factors can affect how much you’ll pay for life insurance premiums:

• Age: Age is one of the most important factors influencing the cost of life insurance. Generally, young people receive better life insurance rates. As you get older, there is a greater risk of developing health issues, resulting in higher premiums.
• Body Mass Index (BMI): BMI is a common screening tool for obesity. A normal BMI is between 18.5 and 25. People with a BMI between 25 and 30 are considered overweight, while a BMI over 30 indicates obesity. Overweight and obese individuals typically receive higher premiums.
• Underlying Health Conditions: An underlying health condition, particularly if it is severe, can raise your premium rate, even if you’re physically active. It is crucial to disclose any pre-existing medical conditions when applying for insurance, as they can significantly impact the terms of the policy and the assessment by underwriters.
• Family History: Certain diseases and illnesses tend to run in families. While insurance providers will consider an active lifestyle, they will also factor in your family history. A family history of premature heart disease or any other severe illness will likely lead to higher premiums — despite being a runner.

Choosing the Right Life Insurance Policy

Choosing the right life insurance coverage can be a daunting task, especially for runners who want to ensure they’re getting the best rates possible. With so many life insurance policies available, it’s essential to do your research and consider your individual needs and circumstances.

Consider Your Health and Lifestyle

When selecting a life insurance policy, it’s crucial to consider your health and lifestyle. As a runner, you’re likely to have a lower body mass index (BMI) and lower blood pressure, which can lead to lower life insurance rates. However, if you have a pre-existing medical condition or a family history of heart disease, you may need to consider a policy that takes these factors into account.

Look for Policies that Reward Healthy Habits

Some life insurance companies, such as Manulife Vitality, offer policies that reward healthy habits, including running. These policies may offer lower premiums or discounts for runners who can demonstrate a consistent and active lifestyle.

Assess Your Family History

Your family history can also play a significant role in determining your life insurance rates. If you have a family history of heart disease or other health conditions, you may need to consider a policy that takes this into account.

Compare Policies and Rates

Once you’ve considered your health, lifestyle, and family history, it’s essential to compare policies and rates from different life insurance companies. Look for policies that offer competitive rates, flexible terms, and comprehensive coverage.

Consider Working with an Independent Broker

If you’re unsure about which policy is right for you, consider working with an independent insurance broker who can help you navigate the process. A specialist can help you assess your individual needs and circumstances and recommend policies that are tailored to your requirements.

What Is the Best Life Insurance for Runners?

Insurance premiums are a crucial factor when considering life insurance needs. The right policy for you depends on your financial obligations, how long you need coverage, and your budget. Here’s how to get the right policy for your needs.

Term Life Insurance

Term life insurance covers you for a specific period. This period, called the “policy term,” could be as short as one year or as long as 30-35 years. At the time of purchase, you can select the policy term that works best for you.

Your policy pays out if you pass away during the policy term. Once the policy term expires, coverage automatically ends. However, in most cases, you can renew the policy for its original term without a medical exam up to a certain age, such as 75.

There are three kinds of term life insurance:

• Level: The death benefit and premium amount remain the same throughout the policy term. It is the simplest and most popular option.

• Decreasing: Decreasing term life insurance is cheaper than level term life insurance because the level of coverage reduces with each passing year. Your premium rate, however, remains the same throughout.

• Increasing: The death benefit amount increases over time without new underwriting to help offset inflation. Your premiums may remain the same throughout or increase at every increase in the payout amount, depending on the insurer.

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Whole Life Insurance

Whole life insurance pays out no matter when you die, provided you keep up with your premium payments. These policies also accumulate cash value at a fixed rate. The cash value grows tax-deferred, meaning the interest and earnings of your cash value become taxable only when you access the funds.

You can borrow or withdraw money from your policy’s cash value whenever you like. Generally, your beneficiary only receives the sum assured upon your death, not any leftover cash value. Whole life insurance is up to 10 times costlier than term life, but it may be worth considering if you have a lifelong dependent, such as a child with a disability, or want to diversify your investment portfolio.

Why Do Runners Need Life Insurance?

There are several reasons why you probably need life insurance cover and to consider insurance premiums if you’re a hobby jogger or a professional athlete:

1. Replacing Your Income: Life insurance can replace your income if you die unexpectedly, allowing your family to maintain their current living standards.
2. Paying Off Debt: The proceeds from the life insurance policy can be used to pay off debts, such as a mortgage or student loan, ensuring your loved ones are not burdened financially.
3. Supplementing Retirement Income: Whole life insurance policy combines lifetime coverage with cash value. The latter can supplement your retirement income and help you live comfortably after your active income stops.

Conclusion

Running regularly benefits both your physical and mental health, and it can also lower your monthly life insurance coverage costs. Staying in excellent shape through running may help ensure you qualify for more favorable life insurance premiums. At Dundas Life, we can walk you through the entire life insurance buying process while offering unbiased, transparent advice. Take the first step toward securing your family’s future by getting a free quote today.

Frequently Asked Questions (FAQs)

What if I have pre-existing health conditions?

A pre-existing health condition may increase your insurance premiums for life insurance, even if you are a runner. It’s important to shop around because not all life insurance companies rate people with pre-existing illnesses the same way.

There’s a good chance some providers will offer you a better deal than others. An independent insurance broker who specializes in high-risk life insurance applicants can help you secure the desired level of coverage at an affordable price.

Can I get life insurance if I participate in ultra-marathons or obstacle course races?

Yes, you are eligible for life insurance if you’re an endurance runner or regularly participate in ultra marathons. However, keep in mind that it’s normal for endurance runners to have higher levels of liver enzymes during training, which could lead to higher premiums. Consider applying for coverage when your training schedule is light.

Can I still get life insurance if I’ve had previous running-related injuries?

In a word, yes. Your coverage options and premium rates will depend on the severity of your injury. Even if you don’t qualify for traditional life insurance — like term life or whole life — you still have options, such as no medical life insurance.

What if I have a running-related injury after buying the policy — will it affect my premium?

If you develop a serious injury after you have already bought a policy, it won’t impact your premium rates. Your monthly premium will remain the same throughout the policy term.