Death in Service Benefit Refused

championless

Hi

I recently joined the pension scheme at work, after working there for almost four years. I had to fill out a medical form as i had had surgery in the previous 12 months.

The pensions manager has now come back to me and said that the death in service benefit, which is a lump sum payment of 4 times my annual salary, has been refused to me by the insurer. Their reason for refusal being that my BMI is too high.

Is there anything that i can do to appeal this? Are they allowed to discriminate based on weight?

It feels a bit unfair, as if i'd joined the pension straight away when i'd joined the organisation, it would have been through without any kind of questions or medical form.

Your help would be much appreciated.
Thanks

gadgetmind

BMI is rubbish as it doesn't differentiate between muscle and fat; lots of *very* fit people, with normal/low body fat, fall foul of BMI measurements.

flutterby_lil

Is there anything you can do? Maybe try to reduce your BMI? (Not being nasty just thinking of solutions.

CLAPTON

what do the rule and regs of the scheme say?

atush

Why didn't you join immediately?

You've lost almost 4 years of contribs (esp the employers ones).

Murtle

As BMI is a dodgy factor to measure on, you would have a claim if you are super fit but possibly not if you were unhealthy?

Hindsight is a good thing, but we can't go back in time to use it.

atush

If there is no time limit to apply, and your BMI prob is fat not muscle, go on a crash diet and get reasessed.

If you are fit and say, a body builder or a rowing champion, challenge it (after getting a letter from a Doctor saying you are fit).

sandsy

It's called underwriting.

If you'd joined when you joined the company, you may not have been underwritten at all. However, by joining the group life insurance at a later date, you may be taking advantge of information you have about your health to try and benefit unfairly from the scheme (select against them). If they let this practice carry on, then they'd be out of pocket on the claims.

championless

Trying to diet but have health problems at the moment (Slipped disc). I am trying, but think it'd take a while. I understand why they're holding it against me, i'm just wondering whether there is anything i can do other than lose weight (which believe me, i want more than anything).

What specifically should I look at in the scheme rules & regs?

I didn't join immediately, as i couldn't afford to (or thought i couldn't, didn't actually make much difference to take home pay when i finally joined).

Yeah, underwriting was mentioned. It just feels unfair to be discriminated against because of my BMI, although isn't all insurance basically just discriminating against people for one reason or another (age, sex, etc)...

gadgetmind

championless wrote: »

I am trying, but think it'd take a while.

Like saving for old age, losing weight takes determination, will power, and a long term approach. And not I say "losing weight" rather than dieting as you need to adopt an approach to food and exercise that you're prepared to continue for the rest of your life.

I lost weight a 1lb per week, and kept it up for a year, and it was the best thing I ever did.

It will also help your back.

although isn't all insurance basically just discriminating against people for one reason or another (age, sex, etc)...

Yes, pretty much. They need to be competitive, so have to offer low premiums, but they also need to make money. They therefore have to be able to judge risk, hence all the questions and medicals.

DUTR

championless wrote: »

Trying to diet but have health problems at the moment (Slipped disc). I am trying, but think it'd take a while. I understand why they're holding it against me, i'm just wondering whether there is anything i can do other than lose weight (which believe me, i want more than anything).

What specifically should I look at in the scheme rules & regs?

I didn't join immediately, as i couldn't afford to (or thought i couldn't, didn't actually make much difference to take home pay when i finally joined).

Yeah, underwriting was mentioned. It just feels unfair to be discriminated against because of my BMI, although isn't all insurance basically just discriminating against people for one reason or another (age, sex, etc)...

Sounds like an insurance and assurance policy, you are aware that you can take out your own pension scheme ? Or do you get a reduction in contribution as you will not be entitiled to the full benefits of the scheme ? Or the company could offer cover at a higher premium to accomodate the increased risk they imagine. Or you could take out a seperate life assurance policy.

I agree with others though, BMI is BS sometimes a lot of folk I know myself included have BMI >25 and below 30 however many of us are or have been sports people.