While there's little we can do about a family history of disease, adopting a healthy lifestyle can substantially reduce your risk for diseases such as hypertension (high blood pressure), coronary heart disease, diabetes and some forms of cancer. 

Insurance companies use these factors to determine the premiums for insurance for each individual. For example the Body Mass Index (BMI) is used to establish whether or not your weight falls within a healthy range. The healthier your weight, the less likely you are to suffer from cholesterol or blood pressure issues which also lead to other problems such as heart attacks. 

When an insurer believes that your health condition statistically predisposes you to claiming more than a healthy person, they charge you a higher price for the insurance. This is referred to as a premium “loading”.  The principle is the same when you live in a bushfire-prone area and pay more for your home insurance than someone who lives in a different area. Another example is paying less for car insurance if you have a good driving record. 

Did you know that some insurers reward healthy behaviour?

You may qualify for premium discounts if your BMI falls within a healthy range (generally 19 to 28). Such discounts apply for the life of the policy.

In addition, when an insurer believes there is a statistical chance of you claiming for a specific health condition, they aim to reduce that risk to themselves by not covering that particular part of the body or that particular condition. So an exclusion can be positive outcome in that it leaves you with a policy that covers you, at standard rates, for everything except that one condition or part of the body which is the subject of the exclusion. 

These loadings or exclusions can be reviewed from time to time and adjusted as your condition improves. That’s why it's important to talk to a financial planner regularly about your personal insurance to help keep your costs down and your cover as comprehensive as possible.  

Lots of insurers offer health and wellbeing reward programs where you can earn points for healthy lifestyle choices. You could be rewarded with not only premium discounts but access to other great deals and offers. Here at Calder Wealth Management, our staff and clients love taking advantage of such programs!

Want to find out how you measure up?

Get an idea of your BMI by checking out this online calculator here.