Who Pays High Premium Rates?

By Author: Marcus Stalder
Total Articles: 491
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When writing an article, it always pays to get the bad news out of the way first. So, when you look at the National Health and Nutrition Examination Survey covering the years 2001 to 2004, you find about two-thirds of all adults in the US are overweight and coming up to one-third are obese. Looking at the earlier survey results, you can see a theoretical rise to the entire population being obese in 2050. In fact, some groups are already heading rapidly in that direction. For example four-fifth of African-American women are overweight with Mexican-American men rapidly catching up. Of course, there will also be a few hold-outs who decide they prefer to be thin. We will probably never get to the one-hundred percent level. Nothing to be proud about.

Why should we care? Well, those statisticians who work in medical research have clear proof that everyone who is overweight has a higher risk of dying younger than average. There are alarming numbers who have a stroke, heart attack or cancer. Once you establish a link between lifestyle and life expectancy, the insurance companies get interested. After all, if they are insuring ...
... people's lives, they estimate when death is likely to occur when calculating the premium rates. Those who are expected to live not less than the average number of years will pay a lower premium than those who are at risk of dying young. Did we mention that adding tobacco into the mix increases the risk of early death by up to five-hundred percent.

The insurance companies have therefore drawn up a list of preferred groups of people. If you are amazingly healthy with no bad habits, you will pay the lowest premiums. You are headed for decades of active life and the insurer can just sit back and allow your premiums to accumulate. But if you have bad habits, you may fall within the standard class or you will be told you are likely to die young. Well, perhaps not in so many words. But you will be given the hint when the insurers refuse you cover or ask for stunningly high premiums. For a start, your rate will double if you still smoke.

When should you worry? The answer is the usual list of suspects, namely high blood pressure, high cholesterol levels and your family history. Obviously, there is nothing you can do if your parents have already died of heart attacks, but everything else is under your control. You can quit smoking and lose weight. As a lead up to applying for life insurance, start asking your regular primary healthcare provider to monitor your blood pressure and blood sugar levels. When it comes to the medical exam to get your insurance, you will be able to show a steadily improving medical record. If you are coming down from serious overweight, the insurer may make the issue of the policy conditional on continuing the improvement. If nothing else, this should motivate you to continue improving your health. That way, you get life insurance and stay alive longer.