Moneygate

Is your waistline blocking you from bagging discount life insurance?

Britain is officially the fat man of Europe. According to official health statistics, 39% of the population – almost 23 million people - is overweight, a higher proportion than any other EU member state.

However, being overweight doesn’t only leave your health at risk: it can also wreak havoc with your finances, according to Annabel Green, of national IFA Moneygate. She said: “Being obese or overweight won't stop you from getting life cover, but it will almost certainly push up the cost of your premiums, and, in some cases, exclude you from certain types of cover.”

Why weight affects insurance premiums: When you apply for life insurance, the underwriters carry out a risk assessment and assign you an insurance rating. Your BMI score is a major factor taken into consideration when determining your level of risk. Applicants with BMI scores of 25 or over (those with a BMI score of 25-30 are classed as overweight) will almost certainly pay more for critical illness cover because of the increased risk of illnesses that might require long-term care.

Don’t panic: However, the good news is that these decisions are not set in stone. With people following new diets successfully every day, it's worth knowing that it's never too late to make changes to your life cover policy.

Annabel Green, of Moneygate, said: “If you lose some weight and qualify for lower premiums or additional benefits, there's nothing to stop you from cancelling the old policy and taking out a new one. And if you gain a few pounds again, it won't affect your policy at all. Also the charts used to determine your height and weight - and therefore the size of your monthly or annual premiums - will vary from underwriter to underwriter.

“Many people also pile on a few pounds as they get older and insurers take this into account when calculating their premiums. If you’re a 25-year-old who is classified as overweight then your premiums are likely to be high as insurers expect that you are likely to gain more weight as you get older. However, underwriters are likely to take a more lenient view of a 60-year-old man who is slightly overweight.”

For more information please go to www.moneygate.co.uk