Do you own a fitness tracker, such as a Fitbit? If not, you might want to put one on your holiday wish list. Not only can these wearables help you get into better shape, but they can even save you on your insurance policies.
Why insurance companies care about fitness trackers
Insurance policies have long been based, at least in part, on your health. But there was only so much companies could know about you. Yes, they could require a physical to see your height, weight and BMI, but what about the time you spend sitting and the steps you take daily? After all, a sedentary lifestyle is associated with numerous health risks, even if you seem fine otherwise.
Any insurance policy that is related to your health gives the insurer reasons to care about your physical activity. And if they have access to your fitness data, they can get a better picture.
How health insurance companies use this data
Based on your average steps per day, could your insurance company charge you more or cancel your policy? As of this moment, no, they cannot punish customers for what their wearable data reveals. But they can reward customers who share this data with them and meet certain goals.
For example, if you take a certain number of steps in a quarter, you could receive a discount on your next premium payment. Just by agreeing to share your data, you could be eligible for things like discounted gym memberships or free wearables. Each insurance company can structure its own rewards—if it chooses to offer any at all.
Insurance companies that offer wearable based rewards
• Oscar: Oscar is a health insurance startup that gives each customer a Misfit band to track daily activity. As you meet specific goals, you receive rewards. You can even earn a dollar a day in Amazon gift cards.
• UnitedHealthcare: If you have United Healthcare insurance through an employer, you may be able to join their wellness program called UnitedHealthcare Motion FIT. You need to have a Fitbit Charge 2 in order to participate and earn credits towards healthcare savings.
• OptimaHealth: With this insurer, you can give them access to your Fitbit app and earn $275 if you enroll in their OptimaFit program. There are four steps total in the program and it takes roughly a month to complete them.}
• John Hancock: This one is something of an outlier in that it is not a health insurance company, but a life insurance provider. They offer a 15 percent discount to customers who track their fitness using a Fitbit.
Are you interested in benefiting from your wearable? Speak with your insurance broker about companies that will reward you.
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