Does Your Weight Affect Your Life Insurance Premiums?
With the weather warming up, and the seasons changing from winter to spring, some of us may be thinking about getting fit in time for the summer season.
For some people, losing weight is pure vanity - we want to look good in our swimsuits! Some people may make the decision that they want to look better and feel better. For others, losing weight is a crucial health issue. Unfortunately many people fail to associate life insurance quotes with weight and obesity and some find themselves with high life insurance rates, without knowing why they are so high. There is hope however that for those who are overweight, losing weight can actually lower your Life Insurance Quotes.
Obesity in Australia
Life insurance quotes are based on several factors and the height & weight of an applicant is one of those factors. In Australia, weight has never been scrutinized as much as it is has at the present. People are slowly beginning to realize the incredible negative affect that being overweight can have on the human body. In Australia, 68% of adult men, and 55% of adult women are considered to be obese (1). If nothing is done, it is estimated that by 2025, 6.9 million Australians will be classified as obese (1).
How insurance companies work out if you’re obese
In the insurance industry, you may be considered to be obese if your body weight is 20 percent or more above your ideal weight based upon height, age, gender and build, or if you have a Body Mass Index (BMI) of 30 and above. BMI is calculated as: Weight / (Height x Height). For example, a 90kg person, 1.8m tall, their BMI is 27.7.
Since life insurance companies factor in health when providing personal insurance quotes (excluding accident cover), such as for term life insurance, it's easy to see why premiums fluctuate with weight. Insurance companies want their clients to live a long and healthy life, because this reduces the percentage possibility that the company will have to pay out because of death. And since weight affects health and therefore affects life span, weight can be seen as a danger and it factors in term life insurance quotes.
Losing weight
Was your Body Mass Index high when you first applied for life insurance, which could have resulted in additional loading and a higher premium? If so, losing weight can do wonders for your life insurance premiums. If your weight comes back to what is considered to be a healthy BMI, and you are able to maintain that weight for a period of twelve months, your life insurance premiums may be reduced down to a standard rate.
Tip: Request a new medical exam
There is one main tip that you need to be aware of when applying for Term Life Insurance. You cannot be forced to take a new medical exam once you've already completed the mandatory one. However if your life insurance premiums were previously loaded due to a higher weight and BMI, after twelve months of maintaining a lower weight, you can request a new medical exam. In fact, you can request a medical exam as often as you like. For those who already have term life insurance policies, this can be beneficial.
Source:
1. House Standing Committee on Health & Aging, Inquiry Into Obesity in Australia, June 2009
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August 2009
