Health is an extremely crucial factor that decides the fate of all insurance premiums. Along with health, other factors like occupation, living standards, and chronic illnesses determine the premium one would receive. The main idea behind getting insurance is avoiding risks.
Term insurance plans cover the earning member’s sudden demise to support the family’s dependents. Hence, when term insurance is issued, the company makes it a mandate to check the health status of the bearer. Healthy people are less likely to have a sudden death scenario than a person who stays unwell regularly.
What is BMI?
Body Mass Index is a method that helps identify the ratio between a person’s weight and. It has an age-specific ideal value that is used as a standard across the world. A normal BMI score lies between 18.5 and 24.5, and one can use a BMI chart to understand its placement.
It is calculated by dividing an individual’s weight in kilograms by its height in meters. This value determines the body fatness and decides the insurance premium values. This value indicates whether the person is underweight, normal, overweight, or obese.
Ways in which BMI Value can Affect Term Insurance
One can use a Body Mass Index calculator to calculate the required value. People with higher BMI values are considerably more prone to diseases, so the premium rates offered to them are comparatively higher. Diseases like heart ailments, hypertension, and gallbladder problems are the most common among people with high BMI values.
However, people with a considerably low BMI are also asked to give high premiums as they are most likely to fall ill because of deficiency diseases. Hence, there is a direct relation between term insurance plan premiums and BMI values.
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Deciding factor of Premium Rates
As discussed, the higher the BMI rates, the more the cost of a term life insurance will be. This is because the company policies consider these factors before issuing a term plan. The rates for a person who falls in the obese category would be extremely high, and a term plan would cost significantly more.
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Waiting period for the term plan
If the BMI of a term insurance plan bearer does not fall under the desired category, one might have to wait longer after completing all formal paperwork for the insurance to get issued. This is because the company would keep a check on whether you are taking steps to lower your BMI or not.
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Reduction in Benefits
BMI values can also affect the number of benefits one gets from a term plan. Somebody who is not fit may not receive all the benefits of a term plan as they are under the high-risk radar of the company. On the other hand, a person with a lower BMI will be eligible for higher benefits due to a lower risk factor.
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Eligibility for return of Premium value
This type of premium offers a return of the premium paid if the policy bearer survives the span of the policy. This added benefit might not be provided to someone at higher risk for chronic ailments.
The Bottom Line
BMI value is an important indicator of a person’s health. Not just concerning term insurance, one should work on lowering the value if it is at a higher rate. Before taking a policy, like a term life plan, one should consult an insurance advisor, use a body mass index calculator, and take multiple ideations from different companies. It is always good to be informed about such decisions and take a step forward only when extremely confident.
Contact PNB MetLife for the best life insurance available in India.
