Summary
An innovative new product has been developed by Animal Friends Insurance (AFI). The new policy offers lower premiums to vegetarians, based on evidence that they are at a reduced risk than their carnivore counterparts of developing certain diseases. It remains to be seen whether other insurance organisations will follow the example set by AFI .
A not-for-profit insurance business has launched an insurance plan which offers vegetarians and fish-eaters a reduced price life insurance cover.
The offer, considered to be the 1st of its type, is being brought to the market by Animal Friends Insurance (AFI). The firm is offering vegetarians a six per cent price reductionon life assurance premiums
The business claimed that vegetarians ought to pay a lesser cost for the product, which pays out if the person were to die, because they were less likely to suffer from a list of critical illnesses, including cancers.
Susan Gaddet, AFI’s senior director, claims that the danger of veggies being diagnosed with certain cancers is reduced by up to 42 per cent and the possibility of them suffering from heart disease is reduced by up to 32%, but despite this they have, until now, had to pay broadly the same premiums as customers who eat meat.
She says that Animal Friends Insurance believe this is patently unfair and says the insurance companies should acknowledge the fact that being a vegetarian can make a very positive impact on life expectancy and lower its charges accordingly.
A standard priced arrangement is also on the market for meat eaters. Both policies are underwritten by LV=, which was previously known as Liverpool Victoria.
In common with normal life plans, a range of factors contribute to the cost of the monthly premium including whether the applicant smokes, their weight, age and sex.
Just at the moment, Animal Friends Insurance is making the 6 per cent lower price itself from the money it earns from from LV=. In the future, however, the firm’s objective was to offer lower premiums on specialist insurance plans. In making the offer the firm is hoping to sign up enough veggies to make it cost effective for LV= to underwrite another insurance policy that takes the veggie diet into account.
Indeed there are big savings to be made, a forty two year oldnon-smoker buying £300,000 worth of life cover might potentially save £393.60 over a twenty five year period.
Where serious illness insurance is concerned, AFI believes that life insurers should begin to treat those that like meat and people that don’t eat meat in approaches matching the way they view those that smoke and those that don’t. We hope that that other companies in the insurance industry will do the same.
It is thought that some executivesin the insurance industry doubt whether there is verifyable proof that vegetarians live longer, and how any insurance company would know that those who had applied stating that they are vegetarian did not savour the occasional rump steak.
When it comes to smoking, the insurance company can refer to your GP’s patient records – if you do smoke it’s probable that your GP would know. However, this is unlikely to apply when it comes to eating meat, an said a spokesperson from the insurance industry.
But some veggies contend that they are not worried about people falling off the veggie ways and suggested that once a veggie has become a veggie, they don’t return to meat-eating, that’s unlike applicants who smoke who tend to drift out and back again into their habit.