Life Insurance: Does Your Weight Matter?

Life insurance rates are calculated based on an individual's risk profile, which includes their health, lifestyle, and medical history. While being overweight doesn't automatically disqualify you from getting life insurance, it can affect your rate and the type of policy you qualify for. Life insurance companies often use height-to-weight ratios or Body Mass Index (BMI) to assess whether an individual is overweight or obese, and this, in turn, can impact their insurance premiums. Overweight and obese individuals are considered to be at a higher risk of developing health conditions such as heart disease, type 2 diabetes, and sleep apnea, which can lead to higher insurance rates. However, each insurance company has its own criteria and standards, so shopping around can help individuals find the lowest rates for their specific circumstances.

How weight impacts life insurance rates

Life insurance companies use a variety of health and lifestyle factors to assess how risky you are to insure and determine the cost of your policy. Weight is one of these factors. If you are overweight or obese, you may have to pay more for life insurance than someone with the same health profile but a different height-to-weight ratio.

Each insurer has its own height-to-weight table, also called a build chart, which is similar to a Body Mass Index (BMI) chart. Some insurance companies rely solely on standard BMI charts, while others have different charts based on gender or age. Based on where you fall on that table or chart, as well as your health history, the insurance company will assign you a health classification.

Health classifications, or risk classifications, are categories meant to depict different levels of insurance risk. They also determine how much you’ll pay for your policy. People with fewer or milder health conditions and height-to-weight ratios that fall within the company’s guidelines for what is considered a normal weight are usually assigned better health classifications and lower rates.

People with more complex health conditions or a height-to-weight ratio that might fall within the company’s guidelines for what is considered underweight or overweight might be assigned a lower health classification and higher rates.

The minimum and maximum weight for each health class can vary between insurers, which can cause the same person to receive different classifications with different insurers. This means that one insurance company may offer you better rates than another.

For example, let’s say you’re 5 feet 9 inches tall and 200 pounds — which is typically labeled overweight under traditional BMI standards — and have no chronic health conditions. In this case, Company A would put you in the Preferred class (the health class with the second-lowest rates), but Company B and Company C have less stringent guidelines around weight and would assign you a Preferred Plus classification (the health class with the lowest rates). So you might pay less for the same coverage with companies B and C than you would with Company A.

Now, let’s say you’re the same height, 5 feet 9 inches, but weigh 219 pounds. In this case, Company A would classify you as Standard Plus, which is a health class slightly more expensive than Preferred. But Company B and Company C don’t offer a Standard Plus class. Company B would assign you to Standard, a health classification that’s meant to depict an average level of insurance risk, for people who might have one moderate health condition. Meanwhile, Company C would assign you to Preferred.

If you have a very high BMI, it's unlikely you'd receive a Table Rating for life insurance based on your weight alone. However, if you have severe weight-related health issues, such as limited mobility due to morbid obesity, you might be denied coverage.

Insurers tend to consider overweight individuals to be more likely to suffer from diseases that can shorten life expectancy, such as diabetes, heart disease, and certain types of cancer. They may offer a higher rate, especially if your life insurance medical exam shows that you have other health issues.

However, it’s rare for insurers to decline coverage based solely on weight. If you are overweight but otherwise healthy, you’ll probably still be able to get coverage. Similarly, an athlete at an ideal weight but who engages in risky hobbies might be too risky to insure.

If you need coverage immediately and are unable to qualify elsewhere, you may want to consider a guaranteed acceptance life insurance policy. However, these policies provide very limited coverage and are more expensive per dollar of coverage than standard life insurance policies.

Weight-related health complications

• Heart Disease: Being overweight can increase your risk of heart disease, which is a leading cause of death worldwide. Insurers may consider this when assessing your risk profile.
• Diabetes: Excess weight, especially around the waist, can increase your risk of developing type 2 diabetes. This is because fat cells can make your body less responsive to insulin, leading to high blood sugar levels. Diabetes is a serious condition that can cause various complications, including kidney damage, nerve damage, and an increased risk of heart disease.
• High Blood Pressure: Carrying excess weight can increase the workload on your heart and lead to high blood pressure. High blood pressure is a significant risk factor for heart disease, stroke, and other cardiovascular problems.
• Sleep Apnea: Obstructive sleep apnea is more common in people who are overweight, as excess weight around the neck and chest can narrow the airway, obstructing breathing during sleep. Sleep apnea can lead to daytime fatigue, increased risk of accidents, and cardiovascular problems if left untreated.
• Mental Health Issues: While not always directly weight-related, obesity can negatively impact mental health. This can include conditions such as depression, anxiety, and body image issues, which may be considered by insurers when evaluating your overall health.

It's important to note that these are just a few examples, and other weight-related health complications may also be considered by insurance companies when determining your eligibility and rates. Additionally, each insurance company has its own criteria and underwriting process, so it's always best to consult with a licensed agent or financial advisor to understand your specific situation.

BMI and weight limits

Life insurance companies use a variety of health and lifestyle factors to assess how risky you are to insure and determine the cost of your policy. One of the factors they consider is your body mass index (BMI). Insurers compare your BMI against their own "build chart" to determine how your BMI will affect your eligibility and rate. While there is no industry standard for how insurers use BMI to make application decisions and determine rates, they generally use it as a proxy for your height-to-weight ratio, which can help determine if you qualify as overweight or obese in a medical sense.

According to the National Heart, Lung, and Blood Institute, the BMI categories are as follows:

• Underweight: Below 18.5
• Healthy weight: 18.4–24.9
• Overweight: 25.0–29.9

If your BMI falls into the overweight or obese range, long-term weight loss can lower your premiums. However, it's important to note that BMI is an imperfect tool and is widely recognised as flawed when it comes to assessing health. For example, a senior who has lost muscle tone may have an "underweight" BMI, while a muscular athlete may have an "overweight" BMI, despite both persons being healthy.

In addition to your BMI, other factors that may impact the cost of your life insurance include weight-related or other health complications, lifestyle habits such as smoking and drinking, and your family medical history.

Each insurer has different weight limits and build charts, so shopping around can help you find the lowest rates for your weight and overall health profile. While it's rare to be denied coverage based solely on weight, you may be denied if you have serious health complications related to your weight. In such cases, you may want to consider a guaranteed issue policy, which does not require a medical exam but tends to be more expensive and offers lower death benefit amounts.

Getting denied life insurance for being overweight

Being denied life insurance coverage due solely to weight is rare. However, if you are overweight and have other medical issues, such as diabetes, sleep apnea, or a history of heart disease, you may be denied coverage.

Life insurance companies use a variety of health and lifestyle factors to assess how risky you are to insure and determine the cost of your policy. Weight is often critical information for insurance companies because it can be a result of other diseases or conditions, such as Cushing's disease, hypothyroidism, polycystic ovary syndrome (PCOS), or insulin resistance. Excess body weight can also increase your chances of developing serious health conditions like heart disease, type 2 diabetes, and sleep apnea.

Insurance companies determine your rating category and the price you pay based on a build chart that is similar to a Body Mass Index (BMI) calculation. The rating categories are typically as follows:

• Preferred Plus: People in excellent health with no history of medical issues. Being over the ideal weight for your height by more than a few pounds will likely disqualify you from this rating.
• Preferred: People with minor personal or family health concerns but are otherwise in great health. There may be more flexibility regarding weight allowances in this category.
• Standard Plus: People in good health with a negative family history or a single health condition.
• Standard: People of average health with a couple of common but manageable health issues, such as high cholesterol or blood pressure. There is also a Standard rating for smokers. Overweight individuals, especially those with obesity, will likely fall into this category.
• Table Ratings: High-risk applicants. Unless you have a very high BMI, you are unlikely to receive this rating based on your weight alone.

If you are denied coverage by one company due to your weight, it is still possible to obtain a policy from another company. However, if you are unable to obtain a standard term or permanent life insurance policy due to your weight, there are a few alternative options:

• Lose weight and then reapply for coverage. Even though insurance companies will only give you partial credit for major weight loss in the previous 12 months, losing weight can improve your chances of qualifying for the policy of your choice.
• Consider a guaranteed acceptance life insurance policy. These policies guarantee acceptance regardless of weight but have limited coverage (usually no more than $25,000) and higher costs per dollar of coverage. Additionally, if the insured dies within the first two to three years of purchasing the policy, the beneficiaries will only receive a partial payout unless the death was accidental.
• Look into no-exam life insurance. This type of insurance does not require blood or urine tests, making it more convenient and flexible. However, it is generally more expensive and offers limited coverage and fewer riders.
• Explore other types of insurance, such as accidental death and dismemberment insurance or group life insurance through your employer.

Tips for buying life insurance when overweight:

• Be mindful of when you apply. If you have recently been diagnosed with a serious health condition, you may want to wait and reapply after your treatment has shown positive results.
• Take advantage of improvements in your health. If you are accepted but charged a high rate, you can ask for a re-rating and a lower premium once your health condition is under control and your prognosis is positive.
• Find the right agent. Look for an independent agent who works with an impaired risk specialist, as they will know which insurance companies are more likely to provide a good rate for your particular condition.
• Compare quotes from multiple insurers. Different companies may have unique considerations when reviewing specific health conditions.
• Be honest about your weight on your application. Misrepresenting your weight could result in your application being denied or your beneficiaries' claims being denied in the future.

Losing weight before applying for life insurance

Losing weight can be beneficial for your health, but it's not always necessary to do so before applying for life insurance. Here are some things to consider if you're thinking about losing weight specifically to get a better rate on your life insurance policy:

The Impact of Weight on Life Insurance Rates

Life insurance companies often use build charts or Body Mass Index (BMI) to determine the ratio between your height and weight, which is then compared against mortality rates to assess your risk rating. If your weight falls outside the preferred ratio, you may be considered a riskier applicant, leading to higher premiums or even denial of coverage. Obesity increases the risk of serious health complications, including hypertension, type 2 diabetes, stroke, heart disease, and cancer, which are all risk factors for life insurance underwriters.

The Challenges of Rapid Weight Loss

While losing weight can improve your health, doing so rapidly or starting a vigorous exercise routine just before your life insurance exam may not be a good idea. Rapid weight loss can stress your organs and lead to abnormal lab results, which life insurance companies may view as red flags. Additionally, insurance companies may only give you credit for half of your weight loss if it exceeds 10 pounds, as they anticipate that most people will regain the majority of the weight within a few months.

The Importance of Overall Health

Life insurance companies evaluate applicants based on their overall health, not just their height and weight. If you don't have any serious health issues or if you lead a healthy and active lifestyle, some companies may not penalize you for being overweight. Maintaining a healthy diet, exercising regularly, and having regular check-ups with your doctor can all contribute to a good life insurance rating.

The Role of Age and Time

If you're concerned about the impact of your weight on life insurance rates, consider your age and how much time you have before applying. If you're younger, you may have more flexibility to work on losing weight and improving your overall health before applying for life insurance. On the other hand, if you're older, purchasing a policy sooner rather than later may be more crucial, even if you haven't reached your weight loss goals.

The Option of Re-evaluation

If you've already lost a significant amount of weight and are maintaining a healthy weight, you may consider re-applying for life insurance or requesting a re-evaluation of your current policy. Most insurance companies will need to see significant and sustained weight loss before considering a premium reduction. Be prepared to provide solid evidence of your weight loss and improved health, as well as undergo a new medical exam and evaluation of your medical records.

Frequently asked questions