MLC Life Insurance in Australia is offering a discount on lump sum business for new retail customers who have a body mass index (BMI) within a specified range.
Called Vivo Incentive, eligible customers will receive a lifetime discount of 7.5% on their annual premium for new lump sum covers, including life cover, TPD and critical illness.
A customer’s BMI is calculated when they provide their height and weight in the policy application process. The discount is then automatically applied to those with a BMI of between 18.5 and 28.5 inclusive.
Michael Rogers, Chief Retail Insurance Officer, MLC Life Insurance, says that through Vivo Incentive, the company “…can quickly help more customers obtain affordable lump sum cover”.
“Our data shows by attracting healthier customers who are less likely to claim, we can help keep premiums more affordable and stable in the long term,” he says.
He says that while BMI does not provide a complete picture of a person’s health, “…there is evidence that a healthy BMI is associated with a reduced risk of a range of conditions, including heart disease, cancer and diabetes. And using BMI as a metric is easy to calculate and verify.”
Rogers also noted the health of customers has changed during the Covid-19 pandemic, which he says is likely to increase the incidence of life insurance claims in the future. He referenced an Ipsos global survey which found that in 2021, one in three Australians (35%) gained weight during the pandemic as lifestyles and working habits changed.
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