Why weighing less means paying less
Life insurance is an essential product for many people, but some insurers are taking a harder line than ever with customers who don't maintain a healthy BMI. In this article, I explain how your weight could affect your premiums - and what you can do about it.
Life insurance is a topic that's unlikely to lift may people's spirits. After all, it's a product that's designed to pay out after you die - and although it provides valuable protection for the ones you leave behind, that's hardly a cheery thought.
In the past few years, though, the decreasing cost of life insurance may have given you something to smile about. According to LifeSearch, the life insurance broker, the cost of life cover has fallen by over 30% in the past few years.
While some consumers will see this as an opportunity to save money by reviewing their life insurance policy, others could find themselves frozen out from cheap cover.
That's because many insurers have begun to take a harder line with customers who are classified as overweight or obese.
BMI basics
Your Body Mass Index (BMI) is one of the measures an insurer will use to calculate how much risk you pose as a customer - and, consequently, how much you will have to pay for life cover.
You can work out your BMI by dividing your height by your weight. This handy NHS calculator should help you.
Your BMI will fall within a ‘range' that classifies whether or not you are at a healthy weight. Here are the details:
| BMI Range | Classification |
| Below 18.5 | Underweight |
| 18.5 - 24.9 | Ideal weight |
| 25 - 29.9 | Overweight |
| 30 - 39.9 | Obese |
| 40 and above | very Obese |
(Source: NHS Choices Website)
Depending on which range your BMI slots into, your life insurance policy may be more expensive.
A weighty issue
Matt Morris, Senior Policy Adviser at LifeSearch, says: “When it comes to life insurance, BMI matters. If your BMI is too high, insurers may increase, or ‘load', your premium, or they may even refuse you cover.”
Typically, insurers will increase life insurance premiums for customers who can be classified as obese (those with a BMI of 30 or above). This is because there is medical evidence to suggest obese people are more at risk of serious health problems such as high blood pressure, diabetes and coronary heart disease.
Remember, insurance companies calculate how much to charge you for your policy based on the risk that they will have to pay out. The less healthy you are, the more likely it is your loved ones may have to claim on your life insurance policy - and the more expensive your premiums will be.
However, according to LifeSearch, not all insurers regard risk in the same way. The company says some insurers may even load premiums for customers with BMIs as low as 27.
Matt Morris suggests that the BMI level at which clients are being loaded “has become harsher over the past five to 10 years.” What's more, it seems the extra sums overweight and obese life insurance customers are expected to pay have begun to rise: “The old loading for obesity meant premiums jumped up by 20% - now it is 50% or more. People are being loaded earlier and loaded higher.”
Athletes and the underweight
It isn't only overweight individuals who face more expensive life insurance premiums. If you thought you were too slender to be affected by insurers' use of BMI classifications, you may have to think again.
Being underweight (i.e., having a BMI of 18.5 or less) could cause an insurer to consider you a riskier customer than someone in the ideal weight range. That's because being underweight can lead to health problems such as osteoporosis and heart damage.
However, BMI is a far from perfect measure for determining overall health. LifeSearch uses the example of a rugby player to illustrate how a very fit, but heavy, individual could have their life insurance premium unfairly loaded. Muscle weighs more per pound than fat, so while the player's BMI might suggest he was overweight, in reality he would be less likely to suffer the same health risks as another ‘obese' person.
What can I do?
If you're concerned your weight may affect the cost of life insurance, one way to combat this is to maintain a BMI below 30 or, if possible, within the ideal weight range.
If there is a specific reason why your BMI is high (for example, if you're a professional sportsperson), make sure you inform your insurer. However, don't be tempted to lie about your BMI if you are asked about it; being dishonest about your health now could invalidate your policy later, as fibs of this kind constitute fraud.
Finally, it's well worth remembering that not all insurers will assess an individual as presenting identical risk. While one company might load an overweight person's life insurance premium by 50%, another might add a far smaller sum to the cost of a policy.
What's more, your premiums will be calculated based on a range of factors - not just your weight. Speaking to an independent adviser could help you find an affordable life insurance policy that will suit your needs, even if your BMI is high.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
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