Sunday, 31 July 2016

Why Coffee Drinkers May Pay

Coffee Drinkers Beware! You’re Paying More For Life Insurance

Bad news coffee drinkers.  Despite some findings that coffee does not affect health adversely, a survey of 1000 coffee drinkers and non coffee drinkers who own life insurance, commissioned by Life Ant, has found that on average, the coffee drinkers are paying more for their life insurance than their non coffee drinking counterparts.

The survey found that the average coffee drinkers pay almost a staggering 20% more money for equivalent life insurance coverage.  We found that the mean life insurance cost for a coffee drinker is $19.24 for their term coverage.  Non coffee drinkers are paying $15.98 for the equivalent coverage.

The survey relied on self reporting, and covered 500 life insurance owners who drank coffee at the time of their application, and 500 who did not.   To avoid the effect that different types of life insurance have on price, the survey used owners of term life insurance (the least expensive and most widely owned type).  We also limited the scope to policies with under $500,000 of death benefit, and the difference in average death benefit between the coffee drinkers and non drinking groups was not statistically significant.

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