How Fitness Trackers Can Help You Save on Life Insurance?

The nexus between fitness trackers and life insurance has become increasingly evident in recent years. As wearable technology continues to evolve, insurance companies are now leveraging data from fitness trackers to offer more personalised and affordable insurance plans. 

Wearable devices such as fitness trackers can monitor various health metrics that aren’t just great for tracking personal fitness but also provide valuable health and wellness information to insurance providers.

So, can using a fitness tracker reduce the premium amount you have to pay for your life insurance policy? Well, in short, yes. But to understand how, let’s dive further into this topic.

Potential Insurance Premium Discounts Through Fitness Tracking

One of the most immediate benefits of using fitness trackers when seeking life insurance is the potential for premium discounts. By allowing access to fitness tracking data, insurers can collect data on physical activity, heart rate, sleep patterns, steps, and other health indicators to assess a policyholder’s risk profile more accurately. 

Healthier individuals who regularly engage in physical activity and maintain good health metrics are considered lower risk, which can result in reduced premiums and financial rewards.

For example, programs like John Hancock’s Vitality allow policyholders to earn points for healthy behaviours. Hitting goals such as walking 15,000 steps a day can translate to up to 15% savings on annual premiums. Such programs not only incentivize maintaining a healthy lifestyle but also provides tangible financial benefits to policyholders.

Long-Term Incentives and User Incentive-Based Programs

In addition to potential premium discounts, several insurance companies may also offer long-term incentives for policyholders who regularly use fitness trackers using incentive-based programs. 

These programs often involve a points system where policyholders can earn rewards for meeting specific health goals tracked by their fitness devices. 

These incentive-based programs incentivize regular use of fitness trackers and encourage long-term commitment to health and wellness, benefiting both the insurer and the insured.

The Importance of Data Sharing, Privacy, and Transparency

While the integration of fitness trackers with life insurance policies offers numerous benefits, it also raises concerns about data sharing, privacy, trust, and transparency. 

Policyholders need to be fully aware of what data is being collected, how it is being used, and who has access to it. Transparency from insurance providers is also crucial in building trust and ensuring that users are comfortable sharing their personal health information.

Insurance providers must adhere to strict privacy standards and have regulations in place to protect policyholder data. This includes securing data against unauthorised access and ensuring data usage complies with privacy laws. 

Consumers should also be provided with clear information on data practices and the option to opt out at any time if they are uncomfortable sharing certain information.

Technological Advancements & Its Impact on Health Tracking

The rapid advancement of wearable technology has significantly improved the accuracy and capabilities of fitness trackers. Modern devices can monitor a wide range of health metrics, including heart rate variability, blood oxygen levels, and even stress levels. 

These advancements enable more comprehensive health monitoring and provide insurers with detailed data to assess risk more accurately.

Integration with other health technologies, such as smart scales and blood pressure monitors can also provide insurers a much wider picture of an individual’s health outlook. Using this data, insurers can offer more personalised and effective health recommendations, which can further incentivize healthy behaviour and lead to better insurance terms.

Ethical Considerations in Health-Based Insurance Adjustments

The use of fitness trackers for insurance adjustments also brings into account ethical considerations. 

There is a growing concern that individuals who do not or cannot use fitness trackers might be unfairly disadvantaged when applying for a life insurance policy. This raises questions about equity and accessibility in insurance offerings.

As such, Insurance companies need to ensure that their policies do not discriminate against those who choose not to use or cannot afford fitness trackers. Additionally, there should be provisions for individuals with disabilities or chronic conditions that may prevent them from meeting certain health metrics. 

Insurance providers should also incorporate ethical practices that ensure all policyholders are treated fairly and have equal opportunities to benefit from health-based insurance adjustments.

Canadian Insurance Providers who offer Wellness Initiatives

Several Canadian insurance providers have embraced the integration of fitness tracking with broader wellness initiatives. 

While we already spoke about John Hancock’s Vitality program others are also worth mentioning. 

Manulife’s Vitality program, for example, offers policyholders the chance to earn rewards and discounts by tracking their physical activity and health habits. 

Other insurance providers, like UnitedHealthcare, offer similar incentives through programs like UnitedHealthcare Motion, which can provide up to $1,000 a year in rewards for meeting daily walking goals. 

Sun Life’s digital wellness platform also offers incentive-based programs to help encourage clients to engage in healthy behaviours

These initiatives highlight a growing trend in the insurance industry to use technology to support and incentivize policyholders to lead healthier lives.

Save on Life Insurance with McIver Insurance

Fitness trackers are slowly transforming the insurance landscape by providing valuable data that can lead to more personalised and affordable life insurance plans. 

The potential for premium discounts, long-term incentives, and enhanced health monitoring provide significant benefits to policyholders. As technology advances, the relationship between fitness tracking and life insurance will only become more integral. Thus, taking advantage now is in a policyholder’s best interest.

For more information on how to save on life insurance don’t hesitate to call McIver Insurance Inc. We are Nova Scotia’s most trusted life insurance brokers and have helped thousands of Nova Scotians find the right life insurance policy to suit their needs. 

Call now at 1-902-220-3279 or email [email protected]

FAQs

Q) How much can I save on my life insurance by using a fitness tracker?

You can save up to 15% annually on premiums depending on the program you choose and the achievement of set goals.

Q) Are there risks associated with sharing health data with an insurance company?

When it comes to sharing data there will always be privacy concerns. Luckily, most Canadian insurance providers have strict protocols in place to ensure user data remains confidential and secure.

Q) What activities do fitness trackers monitor that can be advantageous for insurance providers?

Your basic fitness tracker can measure how many steps you walk in a day, your heart rate, and sleep quality. More advanced fitness trackers monitor body temperature, calories burnt/consumed, blood oxygen, stress, and sleep stages which can all be vital data for insurance providers; helping them get a much bigger picture of an individual’s overall health and lifestyle.