When you consider the cost of life, total and permanent disability (TPD), trauma or income protection insurance, you may expect factors such as your age, occupation and level of cover to influence your premiums.
However, there are other factors that insurers may consider when assessing your application – including aspects of your lifestyle, health, hobbies, work patterns and family medical history.
Some of these factors are outside your control. Others can change over time.
Understanding what insurers consider can help you make informed decisions about your insurance and ensure your cover continues to reflect your circumstances.
Smoking and Vaping
Smoking is one of the factors that can have a significant impact on life insurance premiums.
Vaping and the use of nicotine products may also be taken into account when an insurer assesses your application. Depending on the insurer and your circumstances, you may be classified as a smoker even if you do not smoke traditional cigarettes.
If you have stopped smoking or vaping, it may be worthwhile reviewing your insurance arrangements after you have stopped smoking or vaping for a specified period. Some insurers may offer non-smoker rates after a specified period without nicotine use.
💡 The important point
if your circumstances have changed, don’t assume your existing insurance will automatically be reassessed. Speak with your financial adviser about whether a review may be appropriate.
Alcohol Consumption
Enjoying a drink does not necessarily mean you will pay more for insurance. However, insurers may ask questions about your alcohol consumption as part of the underwriting process.
They may consider factors such as:
- How much you typically drink.
- How frequently you consume alcohol.
- Whether you regularly engage in binge drinking.
- Whether there has been a history of alcohol-related health or other issues.
If your alcohol consumption has changed significantly and your health has improved, this may be relevant when reviewing your insurance.
Weight, Diet and Exercise
Your weight is not necessarily considered in isolation. Insurers may also look at other health indicators, such as blood pressure, cholesterol, diabetes or pre-diabetes, as well as significant or unexplained changes in weight.
The good news is that many aspects of your health and lifestyle can improve over time.
Regular exercise, a balanced diet, adequate sleep and following your doctor’s recommendations can all contribute to better health.
💡 The important point
If you’ve previously received an insurance loading and your health has since improved, it may be worth asking whether your insurer can review your terms.
Family Medical History
Unfortunately, you can’t change your family medical history.
Insurers may ask whether close family members, such as parents or siblings, have experienced certain medical conditions, including heart disease, stroke, particular cancers, diabetes or hereditary conditions.
While you cannot change your family’s medical history, you can focus on the factors you can control.
Maintaining regular medical check-ups, following recommended screening programs and managing areas such as blood pressure and cholesterol can all help you look after your long-term health.
Your Hobbies Could Affect Your Cover
Your weekend activities may be enjoyable to you but could be considered higher risk by an insurer.
Some activities that may receive additional attention during underwriting include:
- Skydiving, paragliding or hang gliding.
- Rock climbing or mountaineering.
- Certain types of scuba diving.
- Motorsport and racing.
- Private aviation.
This does not necessarily mean you cannot obtain insurance if you participate in these activities. The insurer may simply want more information about the activity, how frequently you participate and the precautions you take.
It’s important to be completely honest when completing an insurance application. Providing accurate information helps ensure your insurer can properly assess the risk and can reduce the risk of problems with a future claim.
Mental Health and Stress
Mental health can also form part of the insurance underwriting process.
Depending on the type of insurance and the insurer, questions may cover previous periods of anxiety, depression, burnout, PTSD or other mental health conditions, as well as treatment, medication and periods away from work.
Having a history of a mental health condition does not automatically mean you cannot obtain insurance.
Insurers generally need to understand the circumstances, including your current health, treatment and stability.
If you have experienced difficulties in the past but your circumstances have since improved, providing appropriate supporting information may help the insurer assess your current situation more accurately.
Most importantly, don’t leave out relevant information from an application. Non-disclosure can create problems if you need to make a claim in the future.
Support is available
If you or someone you know is experiencing mental health difficulties, support is available through Beyond Blue. Call 1300 22 4636 or visit https://www.beyondblue.org.au/
Your Occupation and Work Patterns Matter Too
Your occupation is an obvious factor when assessing insurance risk, but your actual working conditions can also be important.
For example, insurers may look more closely at:
- Night or rotating shift work.
- Fly-in, fly-out (FIFO) employment.
- Working in remote locations.
- Physically demanding or hazardous work.
- High-stress working environments.
- The safety procedures and training associated with your role.
Providing a clear description of your duties, safety procedures and relevant qualifications can help an insurer understand the actual level of risk associated with your occupation.
Travel and Time Spent Overseas
Where you travel and how often you travel can also be relevant.
Regular travel to countries or regions considered higher risk due to political instability, conflict or limited access to medical facilities may affect the terms available for some types of insurance.
If your circumstances change – for example, you move back to Australia after spending extended periods overseas – it may be worthwhile reviewing your insurance arrangements.
Recreational Drug Use
Insurers may ask about recreational or illicit drug use when assessing an application.
Depending on the circumstances, this can affect premiums, exclusions or whether an application can be accepted.
If something occurred in the past but your circumstances have since changed, it is still important to disclose the relevant information and allow the insurer to assess your current situation.
Honesty is essential when applying for insurance. Your adviser can help you understand what information needs to be provided and how the insurer’s underwriting process works.
Do You Already Have Enough Insurance?
There is another issue that can sometimes be overlooked – the amount of insurance you already have.
When applying for additional Life, TPD, Trauma or Income Protection insurance, an insurer will generally want to know about your existing cover.
This can include:
- Personally owned insurance policies.
- Insurance held through superannuation.
- Employer or group insurance.
- Smaller policies attached to loans or other arrangements.
An insurer may consider your total level of cover in relation to factors such as your income, debts, assets and financial commitments.
Having too much insurance can mean paying premiums for cover you may not actually need, while having too little can leave you and your family financially vulnerable.
This is why reviewing your overall insurance strategy is important before simply adding another policy.
What Can You Do if Your Circumstances Have Changed?
You don’t need to have a perfect lifestyle to obtain appropriate insurance.
Life changes. You may quit smoking, improve your health, change occupations, stop participating in a high-risk hobby, reduce your overseas travel or simply find that your financial responsibilities have changed.
These changes may provide a good reason to review your insurance.
A practical approach is to:
- Review your current insurance cover and understand what you already have.
- Identify lifestyle factors that may be affecting your premiums or policy terms.
- Improve the areas you can control, such as exercise, smoking, alcohol consumption and general health.
- Keep appropriate medical records and documentation of changes in your health.
- Tell your adviser when your circumstances change.
- Review your total level of cover to make sure it remains appropriate for your income, debts, family and financial goals.
Don't Wait Until You Need to Make a Claim
Insurance is designed to provide financial protection when life doesn’t go according to plan.
The cheapest policy isn’t necessarily the best policy, and changing or cancelling an existing policy simply to reduce premiums can have unintended consequences.
Before making changes, it’s important to consider the type and level of cover you need, the policy terms and exclusions, and whether replacing an existing policy could result in new underwriting requirements.
At Fiducian Financial Services Doncaster, we can help you review your existing insurance as part of your broader financial plan. We can look at your personal circumstances, existing policies and financial commitments to help determine whether your current protection remains appropriate.
Is It Time To Review Your Insurance?
If your lifestyle, health, occupation, family circumstances or financial position has changed, it may be a good time to review your insurance.
Contact Fiducian Financial Services Doncaster to discuss your insurance needs and whether your current cover remains appropriate for your circumstances.
*Source: Adapted from “Is your lifestyle quietly pushing up your insurance premiums?”, Money & Life, 30 June 2026, Financial Advice Association Australia. *
Lindale Insurances Pty Ltd ATF Lindale Insurances Trust ABN 27 027 421 832 is a Franchisee of Fiducian Financial Services Pty Ltd, Level 4, 1 York Street, Sydney NSW 2000. AFSL 231103 ABN 46 094 765 134.
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