ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, February 24, 1996 TAG: 9602270061
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
DATELINE: INDIANAPOLIS
SOURCE: CHRIS GRYGIEL ASSOCIATED PRESS
A SMALLER BOTTOM LINE for those who cross the finish line is offered in a new policy from the Indianapolis Life Insurance Co.
The usual reward for serious runners - those who train whether it's the dead of winter or the dog days of summer - is a healthy heart and lungs.
But one insurance company also wants to give them a break on life insurance rates.
Indianapolis Life Insurance Co. is promoting new discounts for runners on its policies. But the general public need not apply - official results from a 10-kilometer race or longer within the past six months must accompany the policy application.
``We want to reward and encourage the kind of dedication runners bring to their sport,'' said Indianapolis Life spokesman Kurt Jaenicke.
Company president and avid runner Larry Prible came up with the idea for the Runner'sEdge policy as part of an effort to reward people who maintain healthy lifestyles, Jaenicke said.
Last year, the company first offered the policy to participants in the nation's largest half-marathon, the Indianapolis Life 500 Festival Mini-Marathon. This month, the company decided to offer the policy nationally.
Diane Coffey, a spokeswoman for the Washington, D.C.-based American Council of Life Insurance, said many companies offer discounts for people who exercise, but deductions tied to athletic performance were unique.
``We're not aware of any other companies that are that specific about the re- quirements,'' Coffey said.
Runner'sEdge offers premiums that are level for 10 years. The policy also features a temporary, renewable premium deduction that varies by age, amount of insurance coverage, race length and finish time.
For example, a 40-year-old nonsmoking male with a $250,000 Runner'sEdge 10-year term plan would pay $75.98 per quarter with a fitness discount obtained by competing in a marathon. That's 6 percent less than the $80.57 quarterly premium for similar coverage on a 40-year-old male nonsmoker without the discount.
That rate compares to a $111.25 quarterly rate offered by USAA Insurance Co. for a 10-year level term plan for a 40-year-old man in excellent health. The Wholesale Insurance Network quoted a rate of $68.25 per quarter on a 10-year level term plan for a healthy 40-year-old man.
Jaenicke said the discount favors older people. For example, a 55-year-old who maintains a healthy lifestyle as demonstrated by race times would receive a bigger discount than a 25-year-old.
This makes the Runner'sEdge policy unique, he said, in that a person's insurance rate can actually decrease. If that same 40-year-old man who was paying $75.98 for his $250,000 Runner'sEdge policy renewed his discount at age 44, the quarterly premium would drop to $70.08 for the next four years.
``Life insurance typically gets more expensive as you age. Ours actually gets cheaper,'' Jaenicke said.
Indianapolis Life plans to develop a similar policy to market to physically fit adults who aren't among the estimated 9 million people who run 25 miles a week or more, Jaenicke said.
COULD YOU GET AN INSURANCE DISCOUNT
John Ewart, second vice president for underwriting, Shenandoah Life Insurance Co., Roanoke
" We don't have a specialized discount for runners, but we have a (discount) for a preferred class of policyholders ... meet certain criteria such as family history, good build and proper weight, low cholesterol, no smoking for the last three years, a good driving record, no risky avocations such as sky-diving and no record of alcohol or drug abuse."
Bill Ballinger, Virginia underwriting manager, Allstate Insurance Co., Fairfax
We have a Healthy American discount. To qualify, you must not have used tobacco products for the last 12 months, have no driver's license suspense or revocation for the last five years, commit to exercise - including biking, running, aerobics, swimming, racketball and the like - at least three times a week for 30 minutes each time, use a seat belt when in a car or truck 75 percent or more of the time, and promise to avoid excessive intake of salt."
Ken Schrad, spokesman for the Virginia State Corporation Commission, Richmond
"Any insurance company can offer any type of discount provided it applies equally to everyone who qualifies. A company can't give a discount to one non-smoker and then refuse it to another non-smoker. A copy of the policy must merely be filed with the commission."
Compiled by Mag Poff
LENGTH: Medium: 100 lines ILLUSTRATION: PHOTO: ROGER HART/Staff. Drew Barrineau, 36, checks his watchby CNBfor his lap time as he trains for a marathon during a 4-mile speed
routine at the Victory Stadium track. A life insurance company in
Indianapolis has announced discounts for serious runners.