BMI & Insurance Rates – How does BMI Affect your Insurance Premium

BMI which is the body mass index is an important tool considered by insurance companies in determining the insurance premium amount. This is because BMI can clearly indicate whether depending on the current weight, a person is likely to face health risks either currently or in the near future. A person with a higher BMI will have to pay a higher premium as compared to a person with a normal BMI. 

 

Let us understand the exact definition of BMI. The World health Organisation (WHO) defines it as follows:

Body Mass Index (BMI) is a simple index of weight-for-height that is commonly used to classify underweight, overweight and obesity in adults. It is defined as the weight in kilograms divided by the square of the height in meters (kg/m2)”

 

You may calculate the BMI either manually or by using a BMI calculator which is available online. In order to calculate manually, ensure that you note the exact weight in kilograms and the height in metres. In case, weight and height are taken in pounds and inches, you may use the conversion factor of 703 to arrive at your BMI. 

 

Life insurance companies consider BMI as an important attribute in determining the premium amount. The rationale behind this is that based on BMI, if they anticipate higher chances of spending more money on your treatment then they will incorporate this factor which may reflect in paying a higher amount for your premium towards the policy. 

 

If you have a high BMI and feel that your body weight predominantly comprises ofmuscle weight then you may also ask for a report of your fat to muscle ratio.

 

In cases where diseases like diabetes, coronary heart disease, attack, etc is likely as per BMIcalculation, you may expect to pay a significantly higher amount in terms of premium. This is because life insurance companies would want to ensure that they receive a higher premium in cases where the likelihood of a fatal event like death is high. 

 

It is extremely important to understand that if your BMI is higher or lower than the normal average then you must take effort in the right direction. This will benefit you in terms of your overall well being and avoid the risk to life threatening diseases. Taking measures to improve your health is truly worth everything because Health is Wealth!

 

About HDFC Life

HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions.