Life Insurance: Insurers Sting Obese And Smoker
Smokers and the overweight are seeing increased life insurance prices. The insurance industry is penalising people with these higher costs of cover.
The way insurance companies calculate premiums is to work out the risk of the customer to them dying while the policy is activated. When looked at from this point of view, smoking and obesity are obviously very important factors in this consideration.
Some pro-smoking groups assert the point that according to statistics smokers under 40 are as likely to die as non-smokers of the same age group. However, as Sainbury’s life insurance manager, David Pickett said: “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”.
A recent study conducted found that the average smoker paid 56% more than a non-smoker for a life insurance policy. This study was based on nine top UK insurance companies, based on quotes for two men aged 20 asking for £ 100,000 cover over a 25 year period. The only difference stated on the applications was that one smoked and one did not.
As well as toughening up on smokers, the overweight have seen increases in their policies. Recently insurance companies have changed their approach to the obese, the Body Mass Index (BMI) that affects insurance has been lowered from the previous figure of 33 to a BMI of 28. This is a reduction of 16%, anyone with a BMI above 28 faces a 50% rise in premium prices.
Life insurance companies will calculate your BMI, if it exceeds the limits deemed acceptable by the company to doctor’s report may be requested. If the BMI is very high the company may ask you to have a medical examination, if this exam concludes that the customer’s weight is of concern then the policy will be increased by a minimum of 50%, but this can rise to 400% in the case of the morbidly obese.
Life insurance companies do have some tolerance for weight gain, for the middle aged they accept that people naturally put on weight as they age. Age is taken into account alongside weight when insurers take applications.
Obesity is a growing problem in the UK and a serious threat to health, as insurers are making clear, over the last 20 years obesity in adults UK has risen dramatically, with more than 60% men and 50% of women deemed overweight or obese.
So if you’re intending to apply for life insurance it would be beneficial to lose a few pounds first if you’re currently overweight. It’s not quite as simple for smokers, to be seen as a non-smoker by insurance companies you must not have any form of nicotine consumed during the previous 12 months, although some insurance companies extend this period to five years.
Due to the fact that premiums for smokers and the overweight so high as the importance of seeking out a competitive policy rises. The best way to do this is to use a comparison website such as Onlyfinance.com, which means you only need to input your information Once and hundreds of policies will be reviewed, and the best price and package will be selected.
Obviously the policies found on a comparison site will still be higher for smokers and the overweight but the best available deal for you will be found. The importance of life insurance is becoming clear to everyone nowadays, it provides peace of mind, if something did happen then your family will not be left in a state of financial confusion. The popularity of policies has also mean the life insurance market has remained leads a busy and profitable one.
Cheap Life Insurance - Ensuring Your Family is Taken Care Of
Ensuring your family is taken care of after you’re gone is a very important thing to think about. It is quite depressing to ponder over this issue but it is essential to ensure your family has enough financial support when the time has come for you to go. Especially if you have family members that don’t work, stay at home and are financially dependent on you and your salary. Even if you have already invested in life insurance take a look at your policy and see if it’s the right one to have. There is such a thing as a cheap life insurance policy, it’s your job to search the market and find it. There are a couple of different types of life insurance policies such as term life insurance, permanent life insurance, and also combinations of both.
Term life insurance policies can help your family financially and offer benefits after your demise. If you live longer than the agreed upon term, your family will not get any financial support after your death. Permanent life insurance plans also offer financial support to your family after your death. Permanent policies also have cash value terms which means that you get some money back if you live longer than the agreed upon terms. This money can be awarded to you by the insurance company after you cash in your life insurance policy. Anyone can figure out by just looking at the conditions that term policies are cheap life insurance plans while permanent life insurance policies are more expensive. However, the premiums you pay each month for permanent life insurance are the same whereas term life insurance policies are subject to change or increase steadily over the years
The longer you have a life insurance policy with your insurance company, the better the deal you’re going to get. Check out the dividend rates, interest and other factors before choosing a cheap life insurance policy that will fit in your budget. Life Insurance is a recommended investment at the age of 25. It’s a perfect age to begin investing so by the time you are 50, with a family to provide for you’ll have enough to help them financially in the event of your death. By purchasing life insurance when you are younger you avoid having to pay expensive premiums. For term insurance policies they have re-entry stages which are agreements throughout the duration of your policy to undergo a medical check up to assure your insurers that you are maintaining good health. These health check ups will keep your premium low if you maintain a high standard of health. If they find your heath deteriorating or find that you are not taking care of your health as you should be, your monthly premiums for life insurance will increase.
So don’t buy cheap life insurance because someone tells you to or because that’s what the rest of the world is doing. Buy it because you want to take care of your family today, you will be able to take care of them even after you’re gone.
Buying life insurance: A Shopping Checklist
1. What do you want your policy to achieve? Ask yourself what you want your life insurance to do. For example, do you want to have insurance coverage that:
• Pay funeral arrangements?
• pay the outstanding balance due to a mortgage and other debts?
• compensate for the loss of their income? And if so, for how long?
• Contribute to the future education of their children?
• A combination of some or all of the above?
Knowing what you want to achieve with your life insurance policy and approximately the amount that you need to achieve these goals will help you determine how much life insurance you should consider buying. Online life insurance calculators are available to help you put a dollar value on the amount of coverage you need.
1. Who would you like to assure under the life insurance policy?
Most insurance companies offer a wide variety of life insurance products to suit your lifestyle and family needs. You can get an insurance policy on his own life, or you can get a policy for you and your spouse (called a joint life insurance policy). The most common joint life cover policy when the first partner dies, leaving the life insurance benefit for the surviving spouse.
2. How long do you need life insurance?
Consult a psychic is not necessary, although it requires you to estimate the time of your life insurance needs. For example:
• When your mortgage is paid? The repayment period of your mortgage is usually determined by how long their term life insurance policy should be.
• When your kids are finished school? One day you have to finish their education and have enough life insurance coverage to pay their educational expenses will not be necessary.
• When do you plan to retire? You will have less income to replace at that time.
Knowing how much time you need life insurance coverage before you start shopping will ensure you’re comfortable with the life insurance product to complete the purchase. Online tools are available to help you find out what the end of his life insurance policy is most recommended for people with similar lifestyles.
So now that I have the how, who and for how long questions, you’re ready to go shopping.
1. Compare life insurance quotes from multiple companies:
It pays to shop around because life insurance rates can vary considerably depending on the product you choose, your age and the amount of coverage you request. This is the easy part, because with the Internet you can compare life insurance quotes easily, online, at any time.
2. What kind of life insurance has been quoted - standard or preferred? There are two types of life insurance groups that you should know about when buying life insurance coverage: standard rates and preferred. Standard Life insurance rates are the rates of most Canadians to qualify, while around one third of the population is entitled to preferential tariffs.
Preferred rates for life insurance are often offered to very healthy people and means you can pay a lower premium than most. Usually preferred rates are offered only once the results of medical information and tests are known. This will depend on your blood pressure, cholesterol levels, height, weight, family health and history. However, he preferred rates are worth it. You could save up to 30-35% premium discount on your appointment.
When comparing prices, make sure you are comparing the “standard” or “preferred preferred” rates of life insurance. If unsure, ask the broker. It would be disappointing to find out who was quoted preferred rates at the beginning, only to discover that they can not benefit from them later.
1. Reviewing the life insurance broker’s availability:
How to get a hold of the corridor? What are their hours of operation? If it is through its website or by phone, the broker of life insurance should be easily accessible for you if you ever have questions or need to talk to them about a change in their life insurance needs. Look for numbers and extended hours of service as guides.
2. Review of the medical information needed to obtain the policy: Normally, the doctor more information you provide, the better the price. For a policy that asks few or no medical questions, you can bet the premium is higher for the same coverage then a plan to ask for more information. Depending on the company, their age and the amount of coverage you want, you may be asked to provide blood and urine samples. To obtain the samples, a nurse at no cost to visit you.
3. Consider a life insurer to financial stability and strength: A firm of financial stability is something to consider if you are planning on making a long-term purchase like life insurance. There are organizations out there, as A.M. Best, that evaluate insurers and provide a rating on its stability and strength.
4. Ask about renewal options and requirements: Once the initial premium is established, it is usually a guarantee of the duration of the policy (often 10 or 20 years). But what happens when the policy expires? Most policies are renewable until you are 70 or 75 so do not forget to ask your agent if you have to have a doctor to renew your policy. While your premiums will be higher on renewal, find out if it also is guaranteed to remain for the second term of the policy.
5. Confirm the policy can be canceled without penalty: Most term life insurance policies may be canceled at any time without penalty. Be sure to consult your broker to see if the life insurance company has any unusual cancellation policies.
6. Consider the conversion options and restrictions of the policy: As your life changes so do its needs for life insurance and you may want the option to convert your coverage some day.
To convert a term life insurance policy means to transfer all or part of the death benefit of the policy in a policy of life without a doctor. For example, say you originally bought a term policy to protect a mortgage and child. Once the mortgage is paid and children grown, you can find convenient to turn the policy into one that will give you a new level of premiums for the rest of your life, and a death benefit that is not guaranteed as the expiration of age you.
When you buy your life insurance policy, find out if there is any limitation on their age at the time of conversion. In most cases, you have the option to convert until you are 60 years or 65. Also, make sure that there are several options the type of policy can move into the more the better.
Final tip - choose a broker of life insurance for your confidence: While not necessarily impact the type of policy you choose to purchase, a relationship with your broker is essential to feel comfortable with the life insurance policy to buy and the information he has received.
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