Does my BMI affect my term insurance?

In recent times, the pandemic has made us reflect on our lifestyle and health habits. It has made us realize how our health directly affects the quality of our lives. Your health has an influence on all spheres of your life, including your finances. For example, when you are buying insurance, your current health directly affects your premium. There are parameters an insurance company checks to understand an individual’s health. Depending on those, they calculate the premium for term insurance.

Term insurance

Simply stating, the meaning of term insurance is that your life is insured for a specific time. It provides the financial cover your family needs at low premium rates. Term insurance allows you to get a huge cover at an affordable price. In case of the demise of the person insured, the insurance company pays the amount of the policy to the nominee. Several individuals opt for this insurance as it provides financial security to their families in their absence. The premium of term insurance is usually lower than many other types of life insurance for the same amount of cover. You can also increase the sum assured or opt for add-on benefits to your existing insurance anytime. There are a variety of factors affecting the term insurance premium. BMI is one parameter that is usually taken into consideration to determine the status of an individual’s health. 

BMI 

Body Mass Index (BMI) is a measurement to determine if you have a healthy body weight or not. It reflects the suitable weight for an individual by taking their height into consideration. Several medical professionals and doctors use this method to gain clarity about their client’s health. It is a general indicator of the overall well-being of a person.

BMI Calculation

It is quite easy and direct to calculate a BMI. It will barely take minutes, as it only requires your weight and height. The formula of BMI is-

BMI of an individual = weight of an individual in kgs / (Height of the individual in meters)²

Once you have done the calculation, the number that you get is your BMI. You can interpret your result in the pointers below –

• If your BMI is less than 18.5, it means that your body is underweight.
• If your BMI lies between 18.5 and 24.9, it means that your body weight is normal.
• If your BMI is anywhere between 25 to 29.9, it reflects that you are overweight.
• A BMI that is 30 and above signifies that you are obese.

If you are not sure about the accuracy of manually calculating BMI, check your BMI online. Several websites allow you to check your BMI for free. 

BMI and term insurance

Insurance companies consider BMI as one of the health indicators. If an individual’s BMI is in the normal range, he is considered healthy. Whereas, if an individual’s BMI is significantly low, it might be an indicator of an underlying condition. Maybe their body cannot absorb and retain any nutrients. A BMI of 30 and above reflects that an individual is obese. Since obesity is directly linked to several chronic conditions, it is a matter of concern. Individuals with a BMI of 30 and above have a higher risk of being diagnosed with type-2 diabetes, cardiovascular diseases, high blood pressure, and even some types of cancer. Such conditions directly affect an individual’s health. The meaning of term insurance is to provide life cover, and anything adversely affecting it is a concerning factor for insurance companies. If an individual has an extreme BMI, their health is at risk. This will directly impact the premium of the term insurance they are choosing. If two individuals are choosing the same insurance, there is a possibility that a person with a normal range of BMI might pay less premium as compared to a severely obese individual.

While BMI is definitely a key factor, it cannot be the sole health indicator of a person’s health. It cannot calculate the body fat and distribution of body fat of an individual. A person may have a higher BMI than someone who smokes and may yet be healthier. Hence, no insurance company solely takes your BMI into consideration while calculating your premium. Your age, family history, tobacco, and alcohol use, or any existing health conditions, are also other factors affecting your term insurance premium.