Does Your BMI Have an Impact on Your Term Insurance Plan?
Term insurance plans are pure insurance policies that will provide your loved ones with financial support in case something happens to you. Pure term plans offer a high amount of insurance coverage at an affordable cost. With a suitable term plan, your family will receive a decent amount of coverage for dealing with different expenses and maintaining their financial stability.
The term insurance coverage will be offered when you pass away during the policy tenure. Most insurers like Tata AIA also offer various features with their plan. For instance, with the Tata AIA term insurance, you can increase the coverage during the policy’s tenure. However, you must choose the plan carefully, as several factors like your age, riders, etc., determine the coverage you can get. Along with these factors, your BMI will also impact your term insurance plan.
What is Body Mass Index?
The Body Mass Index or the BMI is a system of measurement which several doctors and medical professionals rely on to analyse if an individual has a healthy body weight or not. However, it is primarily used as an overall indicator of an individual’s physical well-being.
The BMI considers several factors like the gender, age, weight and height of an individual. The value calculated from the BMI calculator is used to categorise an individual into groups like- normal weight, underweight, overweight or obese. Being underweight or obese can lead to various medical issues over time.
The BMI is an optimal indicator for doctors and medical professionals to identify whether you fall in the high-risk category or not. The BMI indicator will also help you take the proper precautions to lower your chances of dealing with certain illnesses. The tool can be used for both males and females as well as for children.
Most individuals rely on a BMI calculator to calculate their BMI value. With the calculator, you will have to provide information about your gender, height, age, weight, etc. The tool will then use a formula for calculating the BMI index and provide you with the outcome. Once you get the value for your BMI index, you must compare it with the table to check the category where you belong.
The formula for calculating the BMI is:
BMI = Weight(kg)/[height(m)]2
The ideal BMI value is between 18.5 to 24.9.
How Does BMI Impact Term Insurance?
Finding a suitable term insurance plan can be quite difficult when you have a higher BMI value. This is because the insurance companies use a BMI chart to calculate the premium amount you need to pay. If you’re on the lower side of the BMI, your premium amount may be low.
However, if you’re on the higher side of the BMI, your premium amount may be high. The body’s weight directly affects the premium rate since several insurers hike the premium amount based on obesity. BMI and life insurance premiums are correlated to each other.
A high BMI index value indicates that your chances of dealing with different health issues are high. When you’re at a higher risk of dealing with health issues, your insurer may view you as a risky customer, and they will hike your premium amount. Conversely, a lower BMI index value may also indicate an undiagnosed health issue, which may make you a risky customer for the insurer.
While your life insurance BMI requirements may lead to high premiums, it shouldn’t hold you back from purchasing a suitable term policy for your loved ones. You can go online and compare different policies to opt for a suitable plan for your BMI index value.
The BMI index is an indicator used for categorising your state of health. If you’re under the normal weight category, you’re healthy. However, if you get an underweight, overweight or obese reading, you may be unhealthy. While being unhealthy can lead to health issues, it can also impact your term insurance premium. Your term insurance premium can rise if you do not meet the ideal BMI requirements.