The next time you want to find a reason of motivation to work out at gym, think about the 20 percent discount on your life insurance premium.
Yes, one insurance company in US has just started offering that.
With nearly one-third of adult Americans, are considered obese, this offer is probably going to gain attention. One of them, Phoenix Cos. Inc, has already started offering a special package – customers are given reduced rates if their body mass index (BMI) remains in the 19 to 25 range. Customers will see their premiums drop by 5 percent for every five years that they keep a healthy BMI ratio, up to a maximum of 20 percent after 20 years.
BMI is determined by a height to weight ratio. Normally, A BMI of between 25 and 30 is categorized as overweight and over 30 is considered obese.
Insurance is one of the things we buy, but we never want to use it, given a choice. It is a protection. The company deserves a tap on the shoulder because this program encourages its customer to maintain healthy weight with monetary reward. Obesity has caused diabetes, heart disease and other health-related complications that shorten life spans. In order to stay within the BMI, customers will have to lead a healthy lifestyle – controlled diet and regular exercise.
However, BMI does not take body fat percentage into consideration. Some sportsmen, like American football player and professional body builder, have higher BMI due to more muscle mass, yet are still healthy. Therefore, BMI and body fat should be both used if the insurance companies want to ensure fairer discount to customers.
Will insurance companies lose their revenue by offering discount like this? Not really. When the customers live longer, they make more money from healthy customers who pay monthly premiums well into their 70s. So, I believe that more other insurance companies will follow suit.
How about people who complain that this discount is a discrimination based on health status? They believe that overweight is a biological issue beyond their control. While the word of “discrimination” is sensitive, I do not really agree overweight is something we cannot do about.
In fact, not only insurance company, airlines are doing the same too by charging more on overweight passengers. Click here to read if you want to know more.
Category: Fitness News
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