Smart Quotes.IE News
Friday 2 May 2014
Sunday Business Post – Lifestyle ‘vices’ driving up the cost of Life Cover
Lifestyle “vices” cutting life expectancy and can double cost of Life Cover
Experts Say Increasing Numbers of Irish Need to Undergo Medical Examination for Life Cover due to Lifestyle Excesses
39% of Irish adults are overweight, while 25% are obese . According to Caledonian Life these and other lifestyle characteristics, such as smoking, are pushing up the Life assurance premiums of certain demographics in Ireland.
According to Daragh Feely Sales Manager at Caledonian Life, “When we underwrite Specified Serious Illness and Life assurance applications, the most common medical issues that we encounter are obesity, elevated lipids (cholesterol) and hypertension (raised blood pressure). There has also been a rise in the numbers of applicants with Type 2 Diabetes which is often related to obesity. A higher than average Body Mass Index (BMI) continues to be a tell-tale sign of potential problems down the road for many people 1.”
Caledonian Life say that while no one “vice” will automatically increase the cost of Life cover per se, lifestyle choices such as smoking, drinking etc. are all taken into account when pricing a policy. Reinsurers have compiled a complex matrix which gives the ratings for specific factors and combination of these factors which determine pricing.
———————————————————————————–
Caledonian Life:
Dedicated to providing market leading Protection products and offering excellent service to our Brokers and their clients, Caledonian Life has offices in Dublin, Cork and Limerick. Our products are only available from authorised Brokers, who offer financial advice to help you meet your needs. Caledonian Life is a division of the Royal London Group.
Royal London Group is a specialist financial service provider. Its businesses focus on those sectors of the market which value quality propositions, operating through a number of brands:
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of €60 billion. Group businesses serve around 4 million customers and employ 2,900 people. Figures quoted are as at 30 June 2012.
September 2012
Daragh went on to say, “If someone about 10 pounds over their “ideal” weight, the cost of life assurance should not be affected. But if a person is obese, and especially if they have additional medical conditions such as diabetes or high blood pressure, they could have difficulty getting approved for life assurance and where it is approved, they’ll invariably pay considerably more. A doubling or more of an applicant’s premium due to obesity used to be unusual, but not anymore.”
Diet, exercise and sleep are the core lifestyle factors that impact our health and the cost of our cover as a deficiency in these can often lead to medical problems.
Paddy Mahony a Chartered Accountant and Director at online Insurance intermediary SmartQuotes.ie continued, “It should not come as a surprise to people that these factors are important. We are constantly told that it’s important to eat regularly and choose nutritious foods that you enjoy. Similarly, keeping active is essential for promoting health, and having regular, quality sleep is also critical. Underwriters are particularly conscious of obesity, smoking and alcohol intake as they do not exist in a vacuum; they can lead to other serious health conditions, which is why it can affect your Life assurance rates.”
Caledonian also state that these guidelines are not written in stone and that there are numerous exceptions and variations among life assurance companies. In addition, senior citizens (age 65 or 70 and up) are often held to less strict weight standards. Also those who are considered underweight may be asked to undergo a medical examination.
Paddy went on to say, “The actuarial tables used to assess a person’s life expectancy and thus calculate their life assurance premiums are simply an estimate based on past medical and longevity experience, and financial modelling. Unfortunately, there’s nothing sensitive about it, it’s just maths. Obesity has a great effect on your life expectancy. A large decrease in life expectancy is seen in people who are very overweight and/or obese. In fact, there is about a 20% reduction in life expectancy when you are obese 2. ”
“The good news is that if there has been an improvement in your health or you gave up smoking since you took out a policy it may be worth reviewing the cost of the cover. In addition the market for Life assurance has never been more competitive so it may be less costly than you think to take out a new plan or replace an existing one.”
1. www.irishheart.ie
2. www.obesityireland.ie
Experts Say Increasing Numbers of Irish Need to Undergo Medical Examination for Life Cover due to Lifestyle Excesses
39% of Irish adults are overweight, while 25% are obese . According to Caledonian Life these and other lifestyle characteristics, such as smoking, are pushing up the Life assurance premiums of certain demographics in Ireland.
According to Daragh Feely Sales Manager at Caledonian Life, “When we underwrite Specified Serious Illness and Life assurance applications, the most common medical issues that we encounter are obesity, elevated lipids (cholesterol) and hypertension (raised blood pressure). There has also been a rise in the numbers of applicants with Type 2 Diabetes which is often related to obesity. A higher than average Body Mass Index (BMI) continues to be a tell-tale sign of potential problems down the road for many people 1.”
Caledonian Life say that while no one “vice” will automatically increase the cost of Life cover per se, lifestyle choices such as smoking, drinking etc. are all taken into account when pricing a policy. Reinsurers have compiled a complex matrix which gives the ratings for specific factors and combination of these factors which determine pricing.
———————————————————————————–
Caledonian Life:
Dedicated to providing market leading Protection products and offering excellent service to our Brokers and their clients, Caledonian Life has offices in Dublin, Cork and Limerick. Our products are only available from authorised Brokers, who offer financial advice to help you meet your needs. Caledonian Life is a division of the Royal London Group.
Royal London Group is a specialist financial service provider. Its businesses focus on those sectors of the market which value quality propositions, operating through a number of brands:
- Scottish Life – UK pensions market
- Bright Grey – UK protection market
- Scottish Provident – UK protection market
- Caledonian Life – RoI protection market
- Royal London 360° – offshore investment markets
- RLAM – fund management
- Royal London Plus – life and pensions administration
- Ascentric/IFDL – Wrap Platform
- MoneyVista – online financial planning service for consumers
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of €60 billion. Group businesses serve around 4 million customers and employ 2,900 people. Figures quoted are as at 30 June 2012.
September 2012
Daragh went on to say, “If someone about 10 pounds over their “ideal” weight, the cost of life assurance should not be affected. But if a person is obese, and especially if they have additional medical conditions such as diabetes or high blood pressure, they could have difficulty getting approved for life assurance and where it is approved, they’ll invariably pay considerably more. A doubling or more of an applicant’s premium due to obesity used to be unusual, but not anymore.”
Diet, exercise and sleep are the core lifestyle factors that impact our health and the cost of our cover as a deficiency in these can often lead to medical problems.
Paddy Mahony a Chartered Accountant and Director at online Insurance intermediary SmartQuotes.ie continued, “It should not come as a surprise to people that these factors are important. We are constantly told that it’s important to eat regularly and choose nutritious foods that you enjoy. Similarly, keeping active is essential for promoting health, and having regular, quality sleep is also critical. Underwriters are particularly conscious of obesity, smoking and alcohol intake as they do not exist in a vacuum; they can lead to other serious health conditions, which is why it can affect your Life assurance rates.”
Caledonian also state that these guidelines are not written in stone and that there are numerous exceptions and variations among life assurance companies. In addition, senior citizens (age 65 or 70 and up) are often held to less strict weight standards. Also those who are considered underweight may be asked to undergo a medical examination.
Paddy went on to say, “The actuarial tables used to assess a person’s life expectancy and thus calculate their life assurance premiums are simply an estimate based on past medical and longevity experience, and financial modelling. Unfortunately, there’s nothing sensitive about it, it’s just maths. Obesity has a great effect on your life expectancy. A large decrease in life expectancy is seen in people who are very overweight and/or obese. In fact, there is about a 20% reduction in life expectancy when you are obese 2. ”
“The good news is that if there has been an improvement in your health or you gave up smoking since you took out a policy it may be worth reviewing the cost of the cover. In addition the market for Life assurance has never been more competitive so it may be less costly than you think to take out a new plan or replace an existing one.”
1. www.irishheart.ie
2. www.obesityireland.ie
Price War on Life Assurance
Zurich Life have now joined Irish Life, New Ireland, Caledonian and
Friends in offering two months free on Life Assurance, Mortgage
Protection and Specified Illness policies taken out by March 2012.
This initiative it is hoped will highlight the fact that life assurance is not as expensive as might have been perceived. This initiative also applies to Mortgage Life Assurance customers who may have taken out a policy with their bank at the time of taking out a mortgage who can now look at replacing this cover with a cheaper policy and in addition get the first two months free. In an environment where individuals who took out mortgages in the boom times and are struggling to meet monthly payments this could provide some respite to mortgage holders.
However like everything it comes with health warnings. It is only prudent to switch policy if it is on a like for like basis and the monthly cost after the discount period is over is less than you are currently paying.
At SmartQuotes.ie we offering a discount of 70% for the first twelve months on policies once the free two month period ends. For someone paying €50 a month this would save them €520 over the first 14 months
This initiative it is hoped will highlight the fact that life assurance is not as expensive as might have been perceived. This initiative also applies to Mortgage Life Assurance customers who may have taken out a policy with their bank at the time of taking out a mortgage who can now look at replacing this cover with a cheaper policy and in addition get the first two months free. In an environment where individuals who took out mortgages in the boom times and are struggling to meet monthly payments this could provide some respite to mortgage holders.
However like everything it comes with health warnings. It is only prudent to switch policy if it is on a like for like basis and the monthly cost after the discount period is over is less than you are currently paying.
At SmartQuotes.ie we offering a discount of 70% for the first twelve months on policies once the free two month period ends. For someone paying €50 a month this would save them €520 over the first 14 months
Review your Life Insurance and Save Thousands
The above was the message from the National Consumer Agency in relation to Life Insurance. There are a number of reasons you could benefit from a lower premium such as:
Why not take a few minutes to find out if the cover you currently have is the best value for money. The cover you took out with the Bank at the time of taking out your Mortgage may not be the most competitive available.
In addition SmartQuotes.ie also offer 70% off the first twelve months premiums. For someone paying €50 a month this is a minimum saving of €420 in the first twelve months. This saving in the first twelve months could go towards a holiday, savings or paying off your credit card for example.
It is important to note that while the discounted first years premium is a significant saving it is most probably not worthwhile reviewing your cover unless you can get a cheaper monthly premium for the duration of the policy.
How do I find out more?
Go online to SmartQuotes.ie or Call one of team on 01 6853813
- In a more competitive marketplace insurers have reduced their premiums considerably
- If you are no longer a smoker (for more than 12 months) you should not be paying smokers rates which can be nearly 100% higher.
- The policy you have for your Mortgage may be excessive for Mortgage Life Assurance.
Why not take a few minutes to find out if the cover you currently have is the best value for money. The cover you took out with the Bank at the time of taking out your Mortgage may not be the most competitive available.
In addition SmartQuotes.ie also offer 70% off the first twelve months premiums. For someone paying €50 a month this is a minimum saving of €420 in the first twelve months. This saving in the first twelve months could go towards a holiday, savings or paying off your credit card for example.
It is important to note that while the discounted first years premium is a significant saving it is most probably not worthwhile reviewing your cover unless you can get a cheaper monthly premium for the duration of the policy.
How do I find out more?
Go online to SmartQuotes.ie or Call one of team on 01 6853813
Beat the Pension Levy with SmartQuotes.ie
There has been outrage in the media regarding the 0.6% Pension Levy
that will be imposed to pay for the jobs budget. This has been seen as
an attack private pension funds and punishing individuals for being
responsible and planning for their retirement.
At SmartQuotes.ie we are adopting an innovative approach to minimise the impact of this levy for clients who switch to a pension from us. We will cover the levy for the 4 years of the life of the levy by offering an additional allocation * on amounts transferred over by 31st July 2011. This is the minimum benefit which you will get from switching your pension to SmartQuotes.ie. In addition we offer:
Go online to our pensions page at SmartQuotes.ie or Call one of team on 01 6853813
* Subject to Terms of Conditions of the offer
At SmartQuotes.ie we are adopting an innovative approach to minimise the impact of this levy for clients who switch to a pension from us. We will cover the levy for the 4 years of the life of the levy by offering an additional allocation * on amounts transferred over by 31st July 2011. This is the minimum benefit which you will get from switching your pension to SmartQuotes.ie. In addition we offer:
- Access to all the leading fund managers and insurance companies (Zurich, Irish Life, Canada Life, Standard Life, New Ireland, Friends First and Aviva)
- Full advisory service available. Benefit from our “House View” Portfolio approach Self Invested Option Available at no extra cost (buy and sell shares of your choosing within your pension)
- Quarterly Performance Updates by email (or at any time requested)
- Access to an experienced team
- Consolidate pensions from previous employments (including UK
- employments) at no cost
- Get advice in relation to recent budgetary and tax changes relating to your pension
Go online to our pensions page at SmartQuotes.ie or Call one of team on 01 6853813
* Subject to Terms of Conditions of the offer
Tuesday 14 August 2012
Subscribe to:
Posts (Atom)
