Will I pay less if I keep fit and healthy?

Base level insurance premiums assume that you are healthy and lead a low-risk lifestyle. When calculating your individual premiums your insurance company will add a penalty or 'loading' for any factors which increase their risk. For example, smokers receive a heavy loading on all premiums because of the wide range of health problems associated with smoking.

If you are extremely high risk for a particular illness or accident ¬– because of a pre-existing condition, your medical history, your job or your hobbies – the underwriter may charge you a higher premium to cover it, or possibly exclude it from the policy altogether. It's vital that you are completely honest about your lifestyle and history when you buy your insurance, because if you do not disclose something relevant it could invalidate your policy.

In most cases there is no specific benefit for making healthy life choices once the policy is in place, although there are a few insurance companies who do offer a 'lifestyle discount' on your premiums. If you are eligible for this, you will usually have to reapply for it every year and complete a questionnaire.

Some companies also offer a 'no claims' bonus on income protection policies after a period of time, typically five years.