Pre-exisitng conditions
It is officially the silly season – and summer has well and truly arrived! When there’s Christmas shopping to be done, delicious food to be eaten and social functions to plan it’s unlikely that insurance will feature high on your radar but I have something for you to ponder over the break. Did you know that small changes can significantly reduce insurance premiums and save you thousands of dollars per year?

That New Year’s Resolution to get in the best shape of your life could have more benefits than you expected! Giving up smoking or drinking, a reduction in your BMI or an overall improvement in your health and well-being can mean that you are entitled to reductions in your Health and life insurance premiums. Many lifestyle choices are considered by insurers (often rightfully so) to increase your chances of illness, injury or death and therefore increase their likelihood of having to pay out. As a consequence premiums will often have loadings or even exclusions based on your health, and any improvements in these can work to reduce insurance premiums significantly. If you don’t know if you are affected by these then it’s just another reason to get in touch with an adviser.

 

Reduce Insurance Premiums
VINCE’S STORY

Take for example Vince Vega* (not his real name). Vince was a heavy smoker and drinker and had a BMI of 46 which classified him as morbidly obese. After a particularly harrowing weekend Vince decided it was time to turn his life around and gave up smoking and drinking, no longer ate Royale with Cheese burgers each day and started regular dance classes. Smoking alone added a 100% loading to his premium. He got his BMI down to the healthy range and in the eyes of the insurer became less of a risk. Clearly this example is a work of fiction (Pulp Fiction) but the potential changes to your premiums are very real – you can make that much difference to your premiums through lifestyle changes.

Reduce Insurance Premiums
Actual Example 1

40 year old male office worker
Life Cover $500,000
Occupation: Office Worker

Approximate Monthly Premiums:
High BMI Smoker $171
High BMI Non-Smoker $69
Healthy BMI Non-Smoker $35

Actual Example 2

40 year old female office worker
Life Cover $500,000
Occupation: Office Worker

Approximate Monthly Premiums:
High BMI Smoker $125
High BMI Non-Smoker $59
Healthy BMI Non-Smoker $29

The difference that smoking alone makes to premiums is huge –  over $100 per month for a male!  Ponder the differences these changes could make to your pocket, have an incredibly happy Christmas and New Year, and get in touch with me next year to talk about your options.

All the best to you and yours from ours.

 

Marc

 

Check your BMI here: www.heartfoundation.org.nz/wellbeing/bmi-calculator

Contact Quitline for help giving up smoking.

 

I want to talk to you about insurance options!

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