Scottish Equitable Protect says a lifestyle of hard drinking, heavy
smoking and a poor diet does not have to affect premiums for
critical-illness and life cover.
The office is urging IFAs to encourage clients to protect themselves
financially against the unhealthy effects of drinking, smoking and obesity.
ScotEq Protect says people with unhealthy habits can still benefit from
competitive rates on critical-illness and life cover. Based on its rates,
an individual can drink up to four pints and smoke up to 40 cigarettes a
day without seeing a hike in premiums. Smoking more than 40 cigarettes a
day, however, almost doubles premiums to £41 from £21.70 on a
25-year life policy.
ScotEq says people only a stone or two overweight will not be uprated by
most insurers. An individual would have to be 20 stone in an average of 12
to see critical-illness and life premiums rise.
Marketing manager Heather Armstrong says: “Individuals may well shy away
from critical-illness or life insurance cover for fear of being unduly
penalised for their bad habits. However, IFAs are ideally placed to
emphasise the need for protection and that this cover will, most likely,
cost far less than they think.”