I am obese and recently when I was looking for a term plan, the insurer offered me the policy at double the premium citing my case to be an adverse selection. Are they permitted to charge me a higher than quoted premium?
Alka Kamra, Gurgaon
Yes, insurers can load your premiums if they find you to be of a higher risk than the standard life that they insure. They also have the discretion to completely deny you insurance. If you feel you are being unnecessarily charged such a high sum, you could check with the insurer on their guidelines for such a high premium. Alternately, you could lose weight and reapply for a cover when you have regained good health. Most insurers also offer a counter to what they have offered, which may be a bit lower than what they are suggesting to you at the moment. You have the choice to seek this or reject even this offer if you find it expensive.
