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Your Fitness Will Affect Insurance Premiums

IndianMoney.com Research Team | Updated On Thursday, March 08,2018, 03:54 PM
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Your Fitness Will Affect Insurance Premiums

 

There's a famous saying, "Never leave home without life insurance." Among all life insurance plans perhaps, term life insurance is the most important. So what is a term life insurance plan? A term life insurance plan is a pure protection plan with no survival benefit. The sum assured is paid to the nominee, on the death of the life assured (person insured under the term life insurance plan) within the term of the plan.

The premiums of life insurance plans depend on your age and the sum assured (amount of insurance you avail). Young people pay lower premiums on life insurance plans. Life insurance premiums increase with age. You must have seen many young people wearing a thin strap around their wrist, which resembles a watch. This is the fitness band which helps monitor the number of steps you have taken and also gives an estimate of the number of calories burnt.

Simply speaking...a fitness band helps you keep fit. Wouldn't it be great if insurance premiums were fixed based on fitness levels and not age? Want to know more on term life insurance and endowment life insurance plans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

 

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Your Fitness Will Affect Insurance Premiums

 

Are you a fitness freak who roams around wearing a fitness band, concerned only about one thing....Fitness...Do you spend hours at the gym working out just to be fit? You certainly deserve a discount on insurance premiums.

 

1. Insurers believe fit people must pay lower premiums

 

IRDA, the insurance regulator in India, is studying the applications of wearable and portable devices in Insurance. A working group on innovations does this job. Many Insurers believe that the usage of wearable and portable devices to stay fit, must offer benefits to you and other policyholders.

Currently, you and other policyholders are slotted under a single bracket, irrespective of fitness levels.

Many top life insurers believe that if you are fit and healthy, you must pay lower premiums on insurance plans, irrespective of your age. This will also encourage you to stay fit and healthy.

 

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2. How do insurers fix your premium?

 

Life insurers charge you premiums, based on mortality tables. The premiums you pay depend on your age bracket. The older you are, higher is the premium. You avail health insurance plans from general insurers. These General insurers may ask for a complete medical examination or may rely on your disclosures.

For both life and health insurance, wearable devices can be used to measure personal fitness.

 

SEE ALSO: Good Driver: Pay Less Motor Insurance Premium

 

3. Will Indian Insurers adopt global practices?

 

Indian Insurers love innovation, but insurance products must be designed keeping yours and other policyholders interests in mind. The working group set up by the IRDA, will look into and study the benefits of technology on the insurance sector in India. Of particular interest are the wearable and portable devices and their applications in risk improvement, risk assessment and their use and distribution.

Insurers, particularly in Western Countries, follow, pay-per-use and risk-based premiums. The premiums are fixed depending on your (individuals) behaviour. The focus is on healthy eating and exercise to stay fit and enjoy lower premiums.

Lifestyle diseases like diabetes and heart ailments are affecting the youth in India. India is the Diabetes capital of the World. Staying fit and healthy is of utmost importance and not just for lower insurance premiums. Be Wise, Get Rich.

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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