Insurance Cover and Your BMI - What You Need to Know to Avoid Higher Premiums.
BMI stands for Body Mass Index.
It is a tool defined and used by the medical profession to assess someone's weight against what would be normal for that person's height, it is an assessment of someone's approximate body fat.
BMI is a measure of a person's height and weight.
Doctors use this in conjunction with a person's waist measurement to get an accurate understanding of how healthy a person's weight is.
But I'm guessing you wouldn't be too happy to have your financial adviser measure you for your insurance application, so insurance companies only use height and weight.
The formula for BMI = Weight(Kg) / (Height(M) x Height(M)) BMI uses a scale to assess your weight category.
OK before you panic about your number, as people often do, read on.
In New Zealand the prevailing attitude to weight by women is they feel they are overweight and need to lose weight, while with men they are just fine and healthy.
My experience working with insurance clients, when comparing them to the BMI scale, is often New Zealand women often fall into the normal weight range and men often fall into the overweight category, not to say that people aren't significantly overweight but the self-perceptions are often different to the medical point of view.
My personal situation is a case in point.
I'm fit and healthy, my doctor and my personal trainer both say so.
My current cardiac risk is <2%, but my BMI is 29, so my BMI is borderline obese.
Yes I'm working on losing a couple of Kg's but even 4 Kg's lighter, this will still have my BMI at about 27 and realistically being under 25 for BMI is a pipe dream.
How is this possible you ask? BMI is a guide and doesn't account for muscle mass and bone density particularly well, especially when you are active and train with weights.
BMI is designed to give you an indication based on an average human, so its a guide but not absolute.
Which is where we get back to the insurance side of things.
The insurance companies understand that BMI is a guide, it's not perfect but it's the best guide we have available.
What we find is the standard BMI measure for Asian and Indian cultures tend to under assess body fat with the BMI scale and for Nordic and Pacific Island cultures over assess body fat with the BMI scale.
That's not to say there isn't a problem to address if you have a BMI of 40 regardless of cultural background.
My long-winded point, BMI is a guide.
So how does this apply to insurance? Well in general terms if you are under 19 for BMI the insurance company will have a closer look at you, if you have a reason to be this way they generally won't penalise you for it.
So being light boned and you maintain your weight and your doctor has medical history with no concerns you'll be fine.
However if you have an eating disorder or your doctor has concerns about your weight in your medical history, they will have a closer look.
It may not mean they will change your terms and conditions, but it might take a little longer for a decision to come back.
BMI between 19 and 30 we generally find the insurance companies are quite reasonable in their underwriting.
1.
19-24 is a normal weight range for BMI that doesn't warrant investigation.
2.
25-30 doctors tend not to comment about weight in this range unless there is a need to because of some underlying medical condition.
The insurance companies are guided by the medical opinion when looking at assessment for underwriting and claims.
Where BMI in this range gets a closer look at underwriting is if an applicant has diabetes, either Type 1 or 2.
If you have diabetes and your BMI is above 24, the insurance company is going to appear harsh in their decisions.
But your adviser should also be doing their homework and having a discussion with you about what cover you can have and how you go about getting it.
BMI Above 30 we start getting into non-standard policy terms.
What I'm talking about is loadings.
Loadings are a % of the standard premium over and above the standard premium.
Usually this is done in 25% steps from 50%, so a 50% loading would be 1.
5 times the standard premium.
When it comes to BMI the policy type you are applying for and your BMI will determine whether a loading may apply.
For instance, with some insurance companies they start loading their cover at a BMI of 31, others at a BMI of 32, some will only load specific benefits and not others at the lower end.
Talking to your adviser to arrange the right sort of cover and negotiate your underwriting terms with the insurance companies will give you a clearer picture from day one and minimise your surprises.
OK so my BMI is in the high 30's, what now? High 30's, BMI of 37/38 you can expect loadings on almost all benefits, including life cover.
These loadings can be in the region of 2-3 times the standard premium.
This isn't just because of your weight.
Past health conditions and your immediate family's medical history now play a significant part in assessing your risks.
The important thing is to have cover; a lot of people get offended when they have to face this and don't do anything.
Understand that the insurance company increases the premium because there is increased risk you will claim.
Take the cover at the higher premium, or what you can afford to take, and then focus on improving your health situation.
If something happens it won't be as bad financially for you as having no insurance cover at all.
As you reduce weight we can ask the insurance company to reassess your insurance cover and we often do this for clients.
It's in your interest, as it will save you premium not to mention the health benefits you will receive.
The process of loading re-assessment for weight generally takes 12-18 months, as the insurance company wants to see the weight loss and maintenance of the weight loss.
OK so I'm heavy, really heavy, and my BMI is over 40? The insurance companies do understand that we humans put on weight as we get older, so the older you are the heavier you can be before loadings start to be applied.
For this reason a 25 year old with a BMI of 35 is going to get a larger loading than a 55 year old with a BMI of 35 for the same policy benefit.
At this end of the weight scale, medical conditions aside, we start to see the insurance companies decline to offer cover purely on weight.
Carrying weight long term at this level puts significant stress on the body and organs which result in significant claims, claims which are not a matter of chance but a matter of when.
Joints, hips, knees and backs are often the first to see this.
With your organs the pancreas with diabetes, blood pressure and heart disease are often the first signs.
Because of this if you have a BMI of 40 or more you can expect all insurance companies to decline you for Trauma/Critical Illness, Income Protection/Mortgage Protection, Permanent Disability and Health/Medical Insurance just on your weight.
If you have a BMI of 45 or more then Life Cover is likely to be declined as well.
But it is a case of never say never, talk to an Insurance Broker about your situation, who may be able to arrange suitable cover - or even better cover than you have now.
They may be able to get the premiums you pay for your current cover reduced.
At the very least they can give you a clear understanding of your insurable situation and put together a plan to get you covered in the future.
It is a tool defined and used by the medical profession to assess someone's weight against what would be normal for that person's height, it is an assessment of someone's approximate body fat.
BMI is a measure of a person's height and weight.
Doctors use this in conjunction with a person's waist measurement to get an accurate understanding of how healthy a person's weight is.
But I'm guessing you wouldn't be too happy to have your financial adviser measure you for your insurance application, so insurance companies only use height and weight.
The formula for BMI = Weight(Kg) / (Height(M) x Height(M)) BMI uses a scale to assess your weight category.
- Under 19 is considered under weight
- 19-24 is considered normal weight
- 25-29 is considered overweight
- 30-34 is considered obese
- 35-39 is considered obese II
- Over 40 are considered morbidly obese and pose significant health risks.
OK before you panic about your number, as people often do, read on.
In New Zealand the prevailing attitude to weight by women is they feel they are overweight and need to lose weight, while with men they are just fine and healthy.
My experience working with insurance clients, when comparing them to the BMI scale, is often New Zealand women often fall into the normal weight range and men often fall into the overweight category, not to say that people aren't significantly overweight but the self-perceptions are often different to the medical point of view.
My personal situation is a case in point.
I'm fit and healthy, my doctor and my personal trainer both say so.
My current cardiac risk is <2%, but my BMI is 29, so my BMI is borderline obese.
Yes I'm working on losing a couple of Kg's but even 4 Kg's lighter, this will still have my BMI at about 27 and realistically being under 25 for BMI is a pipe dream.
How is this possible you ask? BMI is a guide and doesn't account for muscle mass and bone density particularly well, especially when you are active and train with weights.
BMI is designed to give you an indication based on an average human, so its a guide but not absolute.
Which is where we get back to the insurance side of things.
The insurance companies understand that BMI is a guide, it's not perfect but it's the best guide we have available.
What we find is the standard BMI measure for Asian and Indian cultures tend to under assess body fat with the BMI scale and for Nordic and Pacific Island cultures over assess body fat with the BMI scale.
That's not to say there isn't a problem to address if you have a BMI of 40 regardless of cultural background.
My long-winded point, BMI is a guide.
So how does this apply to insurance? Well in general terms if you are under 19 for BMI the insurance company will have a closer look at you, if you have a reason to be this way they generally won't penalise you for it.
So being light boned and you maintain your weight and your doctor has medical history with no concerns you'll be fine.
However if you have an eating disorder or your doctor has concerns about your weight in your medical history, they will have a closer look.
It may not mean they will change your terms and conditions, but it might take a little longer for a decision to come back.
BMI between 19 and 30 we generally find the insurance companies are quite reasonable in their underwriting.
1.
19-24 is a normal weight range for BMI that doesn't warrant investigation.
2.
25-30 doctors tend not to comment about weight in this range unless there is a need to because of some underlying medical condition.
The insurance companies are guided by the medical opinion when looking at assessment for underwriting and claims.
Where BMI in this range gets a closer look at underwriting is if an applicant has diabetes, either Type 1 or 2.
If you have diabetes and your BMI is above 24, the insurance company is going to appear harsh in their decisions.
But your adviser should also be doing their homework and having a discussion with you about what cover you can have and how you go about getting it.
BMI Above 30 we start getting into non-standard policy terms.
What I'm talking about is loadings.
Loadings are a % of the standard premium over and above the standard premium.
Usually this is done in 25% steps from 50%, so a 50% loading would be 1.
5 times the standard premium.
When it comes to BMI the policy type you are applying for and your BMI will determine whether a loading may apply.
For instance, with some insurance companies they start loading their cover at a BMI of 31, others at a BMI of 32, some will only load specific benefits and not others at the lower end.
Talking to your adviser to arrange the right sort of cover and negotiate your underwriting terms with the insurance companies will give you a clearer picture from day one and minimise your surprises.
OK so my BMI is in the high 30's, what now? High 30's, BMI of 37/38 you can expect loadings on almost all benefits, including life cover.
These loadings can be in the region of 2-3 times the standard premium.
This isn't just because of your weight.
Past health conditions and your immediate family's medical history now play a significant part in assessing your risks.
The important thing is to have cover; a lot of people get offended when they have to face this and don't do anything.
Understand that the insurance company increases the premium because there is increased risk you will claim.
Take the cover at the higher premium, or what you can afford to take, and then focus on improving your health situation.
If something happens it won't be as bad financially for you as having no insurance cover at all.
As you reduce weight we can ask the insurance company to reassess your insurance cover and we often do this for clients.
It's in your interest, as it will save you premium not to mention the health benefits you will receive.
The process of loading re-assessment for weight generally takes 12-18 months, as the insurance company wants to see the weight loss and maintenance of the weight loss.
OK so I'm heavy, really heavy, and my BMI is over 40? The insurance companies do understand that we humans put on weight as we get older, so the older you are the heavier you can be before loadings start to be applied.
For this reason a 25 year old with a BMI of 35 is going to get a larger loading than a 55 year old with a BMI of 35 for the same policy benefit.
At this end of the weight scale, medical conditions aside, we start to see the insurance companies decline to offer cover purely on weight.
Carrying weight long term at this level puts significant stress on the body and organs which result in significant claims, claims which are not a matter of chance but a matter of when.
Joints, hips, knees and backs are often the first to see this.
With your organs the pancreas with diabetes, blood pressure and heart disease are often the first signs.
Because of this if you have a BMI of 40 or more you can expect all insurance companies to decline you for Trauma/Critical Illness, Income Protection/Mortgage Protection, Permanent Disability and Health/Medical Insurance just on your weight.
If you have a BMI of 45 or more then Life Cover is likely to be declined as well.
But it is a case of never say never, talk to an Insurance Broker about your situation, who may be able to arrange suitable cover - or even better cover than you have now.
They may be able to get the premiums you pay for your current cover reduced.
At the very least they can give you a clear understanding of your insurable situation and put together a plan to get you covered in the future.
