Date:21 July 2010 I Comments: 7 I Views:7,882

I could sum up the rest of this article in one paragraph but to make the post a bit more fulfilling I feel as though I ought to pad it out a bit like a real news article.

There are three types of people in the world;

i) those who see life insurance as a vital part of their financial planning

ii) those who just don’t see the point of life insurance

iii) and those who are told by their wife that they need to sort it out.

People who are fit and healthy with no medical conditions and nothing sinister and serious lurking in their family history can usually take advantage of ‘ordinary’ or ‘standard’ rates from life insurance providers.

However, people who don’t quite fit the neat little mould that represents an almost risk free proposition to an insurance company may find themselves struggling to find insurance or accepting a much higher premium because they don’t know there are other options available.

According to medical research, people with a high BMI (Body Mass Index) may be more at risk of developing serious illnesses such as cancer and diabetes in the future.

Therefore, insurance companies will often increase the price of cover or in some cases, decline cover altogether.

From experience, this can be something of a wake-up call to overweight people who just don’t seem to realise the potential health threats their weight could cause.

For people with a high BMI who fall into category (i) those who see life insurance as a vital part of their financial planning, being turned down can make them even more determined.

>> Struggling to find life insurance for overweight people? >> click here <<

I have spoken to a number of people who have tried to find cover only to discover the price will be ‘rated’ by a considerable amount making the cost almost prohibitive.

Some people may have no choice but to accept a higher premium but there are cases where a little shopping around could still yield more competitive results.

The alternative is to do something about the problem.

Working in this industry and experiencing this first hand, almost all of the people with a high BMI that I have helped find cover are already on some kind of healthy regime to get their BMI down so they don’t have to pay through the nose for life insurance.

Some clients have even opted to hold off arranging their cover until they have hit a target weight and the cost has come down.

Shopping around can still prove worthwhile because some insurance companies will start to apply an increase in price for a BMI of 30 where some will allow a BMI up to 35 before the price rises.

Above these levels there will be more to pay but it is still possible to obtain cover from mainstream insurers with a BMI of up to 50 and possibly higher still from some specialist insurers.

Category: Insurance

Comments

  1. Anon.

    i didn’t think life insurance was so popular (as it is more in the states) that people would go that extra mile to get their health back into shape?
    However I think maybe the government should play on this via the media, it might get some good publicity and maybe have a knock on effect for some people in this country..

  2. William Trebot

    I’ve recently just taken out a Life Insurance policy through Cavendish.

    They charge a one-off fee and they don’t take any commission from the life companies (in my case Legal & General).

    I tried a lot of sites to find the best deal including the usual comparison websites but stubled across Cavendish through Martin Lewis’ site.

    If you want to get the lowest Life Insurance quotes or change your existing policy to save money (That’s what i did) then go to:

    cavendishonline.co.uk/life

    Good luck,

    Will

  3. Cavendish are known to give up all of their commission to give the best deals but they do charge a one off application fee (£35).

    Also, they don’t give any advice. They just receive your application form, check it and pass it on to the insurance company. You have to print out a 35+ page form and post it to them with your cheque.

    All they do is receive applications and forward them on for £35 a time. They process large volumes of applications to make their money.

    As there is no advice, if the cover isn’t right, there is no recourse which means if you do something wrong and a claim doesn’t get paid you have nobody to blame.

    Also, if there are medical conditions you wont find out if they affect the price until after an application has been assessed.

    And finally, their panel of insurance companies is limited to 10 which does not include all the UK insurers and none of the specialist companies for medical conditions or unusual circumstances.

    I have sold slightly more expensive policies to customers who had quotes from Cavendish but preferred to have some advice and help with the application.

  4. Anon

    Thanks for the post. I see there is a knowledgebale bunch out here. I fail to see the point of using an intermediary who fails to give advice. As for the first comment, well if the ability to get life insurance at all or at decent rates can serve as a spur to a healthy lifestyle, well, it can only be a good thing.

  5. Anon

    That Cavendish should act merely as a forwarding office is just taking the sample.

    A decent broker would know which life companies had more stringent acceptance criteria – simply because the life offices need the turnover, or they specialise in slightly ‘dodgy’ risks. But in my experience, the pay out rates are excelent

  6. Some of the above comments have been edited because in the box that asks for your ‘name’ some people decided to put a ‘key-phrase’ so these were deemed to be attempts at advertising.