When applying for personal insurance, your body mass index, better known as your BMI, is taken into consideration by the life insurers as part of their overall assessment.
Your BMI score along with other health and financial factors, will be used by the insurance underwriters to help gauge the level of risk that they (the insurance company), will undertake for the type of insurance cover and the insured amount that you are applying for.
How do we calculate BMI?
It’s basically your weight in kilograms divided by your height in meters squared. For example, if you weigh 76kg & are 175cm’s tall, the calculation would be:
76 divided by 3.0625 (1.75 x 1.75) = 24.8
The chart below will give you an indication of the different weight ranges.
Less than 20 Underweight
Between 20-25 Normal
Between 25-30 Overweight
Above 30 Obese
Why are the life insurers so concerned about your weight?
Unfortunately there is an increased health risk associated with being overweight or obese. Being overweight exposes you to an increased risk of heart disease, cancer & diabetes.
Heart disease affects more than 3.5 million Australians, and is the leading cause of death in this country. There are many factors that contribute to heart disease, however excessive weight is still the most influential factor. Advances in treatment & medical technology have reduced the mortality rate for heart disease, however a change in diet & increased exercise is still your best option.
As with heart disease there is also an increased risk of cancer associated with being overweight. One in three men & one in four women will be diagnosed with cancer before retirement age. Even though survival rates are improving, your best bet is to reduce your chances of diagnosis by improving your diet.
Finally to diabetes which has become a major health concern over the last few years. Diabetes is Australia’s fastest growing chronic disease with over 275 Australian’s being diagnosed each day. Type 2 diabetes is the most common form affecting about 85% of diabetics, while Type 1 affects about 15% & requires regular insulin injections to help manage.
This post from Tom George of Goldsborough Financial Services (Australian Financial Services License 225330)
This is a professional post – If you would like to see your blog posts published at humble savers, please review our Professional Posts page – Thank you.
General Advice Warning
The Information on this page has not taken into account your financial situation, needs or objectives. Before acting upon any advice, you should consider whether it is appropriate for you.