What Is The Impact Of BMI On Term Insurance?

BMI refers to “Body Mass Index”, a value comparing an individual’s weight to their height. It usually paints a picture of the leanness or obesity of the individual. But why is BMI important? Moreover, how does BMI factor into the world of life insurance? 

Let’s find out.

What is BMI?

BMI, or Body Mass Index, is a numerical value derived by dividing a person’s weight (in kilograms) by the square of their height (in meters). Also known as the Quetelet Index, it provides an estimate of whether an individual is underweight, normal weight, overweight, or obese.

Here is a look at the key BMI categories.

To calculate your BMI, you can use a BMI calculator, which simplifies the process by providing instant results based on your input.

Why is BMI Important?

BMI is a widely used indicator to assess a person’s health risks that are related to body weight. Here’s why it matters.

• Health Risk Assessment

• Low BMI: Being underweight can signal malnutrition or underlying health issues like anaemia or osteoporosis.
• High BMI: Overweight or obesity can lead to chronic conditions such as hypertension, diabetes, and cardiovascular diseases.

• Indicator of Lifestyle Choices

A healthy BMI reflects balanced diet habits and regular physical activity, whereas an unhealthy BMI might point to lifestyle imbalances or medical conditions.

• Insurance Risk Evaluation

Insurance providers use BMI as a risk indicator to determine the likelihood of health complications, which directly impacts the cost of a life insurance policy or a term insurance plan.

BMI and Term Insurance

BMI plays a significant role in determining the premium and terms of a term insurance plan. Here’s how it affects your policy.

• Impact on Premium

• Normal BMI: Individuals with a BMI in the normal range are considered low-risk and are often charged standard premiums.
• High BMI: A BMI above the normal range indicates increased health risks, leading to higher premiums or even denial of coverage in extreme cases.
• Low BMI: Being underweight may also lead to higher premiums due to potential health complications.

• Influence on Coverage Amount

A balanced BMI can ensure adequate coverage for your policy. High-risk individuals (due to low or high BMI) may face restrictions on the sum assured.

• Simplified Policy Approval

Applicants with a healthy BMI often experience a smoother underwriting process, as insurers view them less likely to claim for health issues.

Tips to Maintain a Healthy BMI for Better Term Insurance Terms

1. Adopt a Balanced Diet: Focus on nutrient-rich foods and avoid processed items.
2. Exercise Regularly: Engage in activities like walking, jogging, or yoga to maintain a healthy weight.
3. Monitor Your BMI: Use a BMI calculator periodically to track changes and adjust your habits accordingly.

If your BMI falls outside the normal range, seek medical advice to address underlying issues.

BMI is a crucial factor influencing your eligibility and premiums for a term insurance plan. Maintaining a healthy BMI not only improves your overall health but also ensures that you secure favourable customisations for your life insurance policy. A term insurance calculator helps with these estimates based on your personal requirements.