Ok. Maybe its time for life insurance companies to start offering lower insurance premiums for vegetarians.
Because, like being a non-smoker, there is evidence scattered around that suggests vegetarians are healthier and live longer. And if you are likely to live longer, then you should (in theory) qualify as a lower risk and should therefore pay less for life insurance. That’s how insurance works.
I came across this story – where a UK-based insurance company is offering a discounted price for vegetarians taking up a life insurance policy. According to the article, vegetarians are less likely to suffer cancer (by up to 40% for some cancers) and are also less likely to have raised cholesterol, suffer a heart attack or become diabetic.
So what stops insurance companies in New Zealand from offering lower premiums to committed vegetarians?
The short answer is that the evidence is probably not convincing enough and the stats not compelling enough for most insurance actuaries to take this step. And for those companies that do find the stats compelling, it creates another dilemma. A decrease in premiums for vegetarians would need to be counterbalanced by an increase in premiums for meat eaters in order to manage the overall risk.
Personally, I think it’s a good idea to give this a go.
Just think of how creative the product naming could be for a life insurance policy marketed to vegetarians? … try ‘Lettuce Life’?
If you can come up with a great name, please let us know.