The life insurance industry is becoming tougher on smokers and
those of us who are overweight.
When an insurance company calculates its premiums, it has to
work out the risk of you dying whilst the policy is in force.
(Or with Critical Illness Insurance, the risk that you will
become critically or seriously ill during the policy's term.) In
this context, smoking and obesity have become increasingly
important issues.
The life insurance industry pointedly ignores the views of some
Pro Smoking Pressure Groups which argue that smokers under the
age of 40 have around the same probability of dieing as non
smokers. David Pickett, Life Insurance Manager at Sainsbury's
spoke for the insurance industry when he confirmed "Health risks
associated with smoking can have a big effect on life cover
costs. It is vital for those who have kicked the habit to review
their policies".
Just how big an effect smoking has on life insurance costs was
highlighted in a recent snapshot study by
www.express-life-i
nsurance.co.uk. This found that the average smoker paid 56%
more than a non-smoker. The study was based on nine of the UK's
top insurance companies and examined the premiums quoted for two
men aged 30 asking for £100,000 cover over 25 years. The only
difference between the application details was that one was a
smoker and the other wasn't.
The life insurance industry has also recently tightened its belt
on the overweight members of society. Previously, only people
with a Body Mass Index of 33 or more were considered as
overweight. This level has now been reduced by 16%. Now anyone
with a BMI of 28 or more is likely to face premiums loaded by
50%. If you're anxious to know whether that includes you, you'll
need a calculator! BMI is calculated by dividing your weight in
kilos by your height in meters and the result squared.
So if you're intending to apply for life insurance is may be as
well to loose a few pounds first - oops kilos - and they're much
harder to lose than pounds!
It's not quite so straightforward for smokers. To qualify as a
non-smoker, most insurance companies insist that you must not
have "smoked or otherwise consumed any form of nicotine products
during the previous 12 months." Indeed, some companies go
further and extend the qualifying period to 5 years!
Because premiums for smokers and chubbies are so high, it
becomes even more important to seek out the cheapest possible
prices. As you're an internet surfer, the odds are you'll land a
good discount. Just search for cheap life insurance and let your
fingers do the walking!! You'll still pay more but the discount
will soften the impact on the wallet. Expect online savings of
10% - 15%.
About the author:
Michael is an exclusive financial writer who writes articles
about family finance. He writes for
Life
Insurance Quotes.More
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