Insurance World

Overweight people are in the firing line again. Life insurance companies are increasing premiums up to four fold for fat people. They’ve always charged more for those of us who over-eat, but during the last year the penalties have got worse.

In moves to tighten the belts further, the life insurers are lowering the weight limits they use to categorise people. This tougher move means that those who are merely overweight and would have previously qualified for a standard premium, are now penalised with higher premiums – and the premium rapidly rises the more overweight they believe you are.

Height and weight are just two of the questions you have to answer when you apply for life insurance. From them, the life company calculates your Body Mass Index and if that exceeds the limits they define as acceptable, they might ask for a doctor’s report. In bigger cases they might ask you to have a medical examination. If this confirms that your weight is of concern, then you can expect your premium to be loaded by at least 50% and as much as 400% if you’re really obese. Recent research shows that around 25% of applicants will experience problems getting life cover due to their weight. In extreme cases the insurer will even refuse the application.

In an acknowledgement of normal middle age spread, the insurance companies do take your age into account when deciding your premium. They accept that people naturally tend to put weight on as they age. If you’re young and overweight, however, they’ll certainly hit you hard. So overweight and 38 will be hit much harder than overweight and 58.

For example, a non smoking healthy man aged 35 asking for Ј150,000 level cover over 25 years will currently be quoted Ј18.77 by Scottish Provident but this could easily jump to Ј35 if he is overweight and up to Ј47 if he’s obese.

And obesity is certainly a growing problem. Over the last 20 years obesity in adults has rocketed with more than 60% of men and 50% of women being judged as overweight or obese. And signs are that the problem won’t improve. In children aged between 2 and 15, 28% of girls and 22% of boys are overweight.

How do you rate on the Body Mass Index?

Calculate your own BMI.

Note your weight in pounds and multiply it by 703.

Divide the result by your height measured in inches

Again divide the resulting number by your height in inches

The result is your BMI

The typical insurance company considers a BMI of between 18.5 and 24.9 to as normal. Above 25 classifies you as overweight. Over 30 and you’re obese.

To give you more of a fix on what this means for you, here are the BMI’s for twelve famous people:

Under weight

Paula Radcliffe – Marathon Runner - 18.0

Victoria Beckham – Footballers Wife - 17.0

Jennifer Aniston – Actress - 17.5

Normal weight

Alan Shearer – Newcastle Footballer - 24.4

Davina McCall – TV Presenter - 20.8

Cilla Black – Presenter - 20.7

Overweight

Russell Crowe – Hollywood Actor - 25.6

Ann Widdecombe – MP - 25.1

Charlie Dimmock – Gardening Presenter - 26.0

Obese

Norman Schwarzkopf – US General - 30.5

Michelle McManus – Presenter - 34.4

Dawn French – Comedienne - 43.8

By Joseph Ducat:

With the high cost of gasoline nowadays, most new drivers think twice of getting car insurance.

Driving without any car insurance is a very big risk. Most drivers might think that car insurance is way too expensive, but in the long run it may save you a lot of money.

Take for instance this example, if you are in a car accident it may cost you thrice the amount you might have paid for a car insurance to cover for hospitalization and for buying yet another car. Plus without car insurance you will be paying police fines as well as paying for suspended licenses.

A total of 47 states require some kind of insurance for your car. It would be wise to know the basic law covering car insurance. Here are ten tips you can refer to on how you can get the best deal on car insurance.

1. Know the different types of car insurance policy

The first thing to know in buying car insurance is to understand the different policies they offer. Choose a policy or policies that would best suit your needs.

Liability - This policy covers physical injuries and damages to property. This includes paying for hospitalization and other medical expenses. Damage to property includes vehicles and other tangible property that might have been damaged during the accident. Liability also includes expenses for court proceedings if the vehicular accident requires one.

Collision – This policy covers any damages if your vehicle is crashed to another vehicle, lamp posts, house or any another objects.

Comprehensive – This policy covers damages caused by natural disaster like flood, storm, hail or wind. This also includes damages by theft or vandalism.

Medical Coverage – Medical expenses are covered by this policy not considering if the cause is a vehicular accident or not.

Personal Injury Protection (PIP) – A personal insurance of the driver. This policy covers for medical expenses and treatment caused by an auto incident.

Uninsured Motorist – If by chance you are hit by an uninsured driver, this policy covers the damages done to your vehicle.

Underinsured Motorist – This policy will cover the remaining cost for repairing your damaged car if ever the incident is caused by an insured driver with inadequate liability insurance.

Rental Reimbursement – In case of a damaged car due to a vehicular accident, this policy will give a daily allowance for rental fee.

2. Know your credit rating:

In most states, credit rating has always been the number one factor affecting car insurance rates. Be sure you have a copy of you credit report and check its accuracy and immediately contest any erroneous information.

3. Motor Vehicle Report (MVR)

You can get a copy of your Motor Vehicle Report in your respective Department of Driver Services or Department of Public Safety in your state. A three year record may cost you 5$ and a seven year record would cost you 7$. Like credit reports, verify that all information are correct.

4. Accident Reports

You can get a copy of your Motor Vehicle Accident Report from the local police department. It may take around six weeks before you can receive the detailed report. You might need to pay a higher car insurance rate if you have reported accidents within the last eighteen months.

5. Scout for a good insurance package

There are some insurance companies that are offering multi-vehicle discounts. You would get a lower rate if you have two or more vehicles that you want to get insured. Also, you can get a good deal from one company that packages all their insurance policies, including home and health insurance.

6. Check out various discounts

Most insurance company offers a discount to drivers over 55 years of age. It always pays to be a good student; you can get a student discount if you have a3.0 point average or higher.

7. Obtain a Driving Safety Certificate

It is common for car insurance companies to give certain discounts to those who finish a safety driving course with a very good standing.

8. Check the model of your car

Insurance rates can be different from vehicle to vehicle. A fancy car will obviously have a higher rate than an older model.

9. Take advantage of added features

Be sure you are receiving lower rates for safety and security features like antilock brakes and air bags.

10. How much are you willing to pay

Choose the option where you can handle the down payment and the monthly paying scheme. Compare other insurances’ prices before purchasing one. You can try calling a toll- free number (1-888-588-5111) where you can ask for car insurance assistance and compare rates.

Having car insurance is like driving trouble-free. But, as always, being a responsible driver exceeds all effort in having a hassle-free life on the road. Never drink when you’re driving. Have a big respect for your life and that of others. Go get your car insured and be safe on the road!