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.
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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
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