Britain is officially the fat man of Europe. According to official health statistics, 39% of the population – almost 23 million people - is overweight, a higher proportion than any other EU member state.

More worryingly still, 19% of the population is now classed as being clinically obese – that is, having a body mass index (BMI) rating of 30 or above.

The health risks of being overweight or obese are well documented. Carrying excessive pounds, or, in many cases, stones, makes you more likely to suffer from respiratory problems, strokes, gall bladder disease, heart disease, non-insulin dependent diabetes, cholesterol problems and hypertension.

However, being overweight doesn’t only leave your health at risk: it can also wreck havoc with your finances.

Cover me

As we get older, most of us will take out some form of life insurance to protect our loved ones and next of kin in the event of an accident, illness or death.

Being obese or overweight won't stop you from getting life cover, but it will almost certainly push up the cost of your premiums, and, in some cases, exclude you from certain types of cover.

Why weight affects insurance premiums

When you apply for life insurance, the underwriters carry out a risk assessment and assign you an insurance rating. Your BMI score is a major factor taken into consideration when determining your level of risk.

Applicants with BMI scores of 25 or over (those with a BMI score of 25-30 are classed as overweight) will almost certainly pay more for critical illness cover because of the increased risk of illnesses that might require long-term care. Those who are classed as clinically obese may be refused critical illness cover altogether, as some insurers see the risk of death or long-term illness as too high.

Some underwriters will take special measures for people who are more than double what insurers believe is the normal weight for their height. This means that such people may not be allowed to take out critical illness cover or sickness-related benefits as add-ons to their life cover policy.

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Don’t panic

However, the good news is that these decisions are not set in stone. With people following new diets successfully every day, it's worth knowing that it's never too late to make changes to your life cover policy. Even if you get a particular rating when you take out a policy, you can change the policy when your circumstances change. So if you lose some weight and qualify for lower premiums or additional benefits, there's nothing to stop you from cancelling the old policy and taking out a new one. And if you gain a few pounds again, it won't affect your policy at all.

In addition, the charts used to determine your height and weight - and therefore the size of your monthly or annual premiums - will vary from underwriter to underwriter. This means that just because one insurer classifies you as being overweight and therefore a higher insurance risk, another insurer may still classify you as being standard weight.

Most insurers will also take the age process into account. Many people pile on a few pounds as they get older and insurers take this into account when calculating their premiums. If you’re a 25-year-old who is classified as overweight then your premiums are likely to be high as insurers expect that you are likely to gain more weight as you get older. However, underwriters are likely to take a more lenient view of a 60-year-old man who is slightly overweight.

What can you do?

If you are worried about your weight and the effect that it may have on your ability to find comprehensive life insurance, then don’t panic: you will almost certainly be able to find an insurer who will be able to provide you with suitable life cover. It may be harder, if you are clinically obese, to find critical illness cover, though again it is not an impossible task.

However, losing weight will not only improve your health but also lower the cost of your premiums as well. So if your new year’s resolution is to hit the gym, it certainly pays in more ways than one to lace up those trainers and hit the treadmill.

Useful links

Compare life insurance - £150k cover from £5 a month
Life insurance: more serious than cereal
Premium price - little benefit?
How to get cheaper life cover