Obesity affects life insurance premiums
Published On 18 June 2007
Insurers will often increase the price of an insurance policy if an individual is seen to be obese, experts have warned.According to the Association of British Insurers (ABI), it is crucial that insurers cover themselves against the increased likelihood of a claim being made. Obesity significantly increases the chances of developing a variety of cardiovascular diseases and insurers need to take this into account when offering a policy.
Jonathan French, a spokesperson for the ABI, observed: "Lifestyle factors could have a bearing on the premium that you pay - and it's likely that different insurers will use different measures to determine lifestyle factors.
"Insurers look for factors which are likely to increase the risk of a claim being made. For example, if you smoke then there is a higher likelihood of you contracting a variety of illnesses than if you don't smoke. In the same way, if you are obese there is a higher risk of other health problems resulting from that, and therefore the risk of a claim is going to be higher and insurers will price their policy accordingly."
Significantly, an individual who improves his or her lifestyle may well be able to adjust their life insurance position.
"If you let your insurance company know that you've changed your lifestyle and your state of health has improved, then they might well - in fact in most cases they will - amend the premiums in your favour," Mr French added.
The Department of Health reports that 50 per cent of all UK adults are overweight. Obesity, in particular, has been shown to be a direct cause of heart disease, strokes and type-2 diabetes.
