Life insurer TAL is now charging premium loadings for overweight and obese customers who may have previously been accepted at standard rates across all benefit types.
After reviewing the rapidly increasing prevalence of obesity in Australia, TAL adjusted their body mass index (BMI) calculation loadings to provide a more accurate reflection of risks involved.
The BMI loading will increase with the rise of a customer’s rating on the TAL BMI tables.
TAL general manager for retail distribution, Niall McConville, said there is an industry need to review what is classed as standard risks.
“We believe in appropriately pricing risk, based on available evidence, to ensure our ability to pay claims in the future,” McConville said.
“There will be opportunities for customers to have their medical loading for obesity reviewed. This hopefully is an incentive for people to get healthier. Customers should be paying the right price for their risk.”
