Coverage Denied: Personal finance blogger Edmund Greaves was unable to get a life insurance policy
My life has been an amazing whirlwind this year. I am married and my new wife and I have bought a house. Then we heard the happy news that we are expecting a baby in October.
So with a new wife and baby on the way, I decided it was time to get a life insurance policy. I wanted to make sure my family would be protected and able to pay off the mortgage should the worst happen. First stop – find an insurer. Vitality was recommended by a friend so I called them to find out the cost. That’s as far as I got – one of the company’s advisors made it clear that I would be denied coverage.
It’s not because I’m some kind of “politically exposed person” – as the banks claim many of those they turn down are. Nor is it because of a personal health problem, such as an underlying heart condition or a risk of hereditary disease.
I don’t have any illnesses, I’m a humble personal finance blogger – and I’m only 34. No, the reason given to me is my weight. Simply put, I’m too fat.
I weighed 159 kg (25th) and my body mass index (BMI) was 49.3. BMI, the ratio of weight to height, is used to measure whether someone is at a healthy weight.
The NHS classifies any score above 30 as ‘obese’ and above 40 as ‘severely obese’. Vitality does not insure anyone with a BMI score over 40.4.
The latest data from the NHS warns that in England alone, more than 1.4 million people are ‘severely obese’ – and the numbers are rising.
Like me, millions of people cannot qualify for life insurance.
This is especially concerning because some mortgage lenders may require you to take out coverage before lending you money to buy a home.
So why are insurers blocking millions of otherwise healthy people from getting insurance and what can we do about it?
Why take out life insurance?
Life insurance ensures that your family is financially taken care of in the event of your death by guaranteeing them a pre-agreed lump sum. Usually this should be enough to pay off your mortgage.
Monthly premiums vary and depend on your age, lifestyle and factors such as whether you do hazardous work.
A mid-term policy, which is paid over a fixed period that typically runs until the end of a mortgage, costs around £38 a month, according to broker Reassured.
Big problem: The NHS classifies any body mass index above 30 as ‘obese’ and above 40 as ‘severely obese’. Leading insurer Vitality does not insure anyone with a BMI score over 40.4
A lifetime policy, which pays out regardless of when you die as long as you keep track of your premium payments, can cost around £180 a month.
I was not covered because my weight in relation to my height – which is 5ft 9in – used to calculate BMI was considered too high and too big a risk factor.
Obesity increases your risk of many other health problems, such as coronary heart disease, some cancers and stroke.
Vitality says poorly controlled diabetes, cardiovascular disease, and lifestyle reasons (such as alcohol consumption) are other common reasons an insurer may deny coverage.
Nicky Bray, a lead insurer for Zurich UK Life, says her company tends to reject people with a BMI over 40.
“For customers with a high BMI over 38, applications are referred to an insurer to see if we can provide coverage. The maximum BMI we want to provide is 47 for any age,” she adds.
While you may feel fit and healthy, insurance companies can estimate how much risk you’re at using only your BMI and whether you smoke.
Alan Lakey, of consultant Highclere Financial Services, says having a condition like high blood pressure won’t prevent you from getting coverage if it’s managed successfully, but it will add to your premiums.
He adds: ‘Another area that can be a problem is family medical history, particularly with conditions such as breast cancer in women under 40.
“Someone who has a sister or a mother with a diagnosis can be refused.”
What to do if you are rejected
Specialty brokers such as Cura, Moneysworth, and Pulse help ensure coverage for people with underlying health conditions or extreme hobbies, Lakey says.
Measures such as BMI can in some cases unintentionally lead to unjustified policy refusals.
For example, professional rugby players can have very high BMIs because of their disproportionate muscle mass.
Warning sign: obesity increases the risk of many other health problems, such as coronary heart disease, some types of cancer and stroke, which is why insurers may not provide coverage
In such cases, it is better to use an intermediary who can help you obtain cover by taking into account your circumstances.
BMI itself is a controversial measurement, with some doctors questioning whether it’s an overly simplistic tool for determining if someone is overweight.
Brokers typically consider applications more carefully and don’t rely on computer models to find policies for clients. Vitality recommends looking for a specialist broker with biba.org.uk/find-insurance. Consider this route if you think you’ve been wrongfully rejected.
Karina Hutchins, head of mortgages at digital consultancy OpenMoney, says: ‘Just because one insurer says no doesn’t mean they all will. Find an advisor who can compare insurers to make sure they’re offering you the right policy for your circumstances.’
Reversal of fortune
The good news in my case is that, with hard work, the rejection can be reversed.
A Vitality spokesperson says, “Ongoing medical issues can often be resolved, so while you may have been rejected initially, a second application may be accepted once these reasons are resolved.”
I’ve paused my insurance search while tackling the underlying problem: I’ve started losing weight and reduced my BMI to 44.4.
I have also set myself the challenge of climbing Kilimanjaro in February 2024, which I am doing on behalf of Marie Curie in memory of my late mother (view my fundraiser here).
Being rejected for life insurance shakes you. But I am determined to do the right thing for my family so that if something were to happen to me, they would be protected.
The younger you are, the cheaper your monthly premium will be, and once the cover is in effect, any future changes to your health will not affect the policy.
Emma Walker of LifeSearch broker: ‘In contrast to a general insurance policy, with a life insurance policy for, say, 25 years, the cover and premiums are fixed for the term. And you don’t have to pass on changes in your health to the insurer.’
- Edmund Greaves is the editor of the personal finance blog Mouthy Money.
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