Life Insurance Denial: Overweight And Uninsured?

Being overweight does not automatically disqualify you from getting life insurance, but it might affect the rate and type of policy you qualify for. Insurers consider several factors when evaluating applicants, including age, build, gender, health condition, and lifestyle choices. While weight is only one of these factors, it can be critical as it can result from other diseases and increase the likelihood of developing serious health conditions. Insurers typically use height-to-weight ratios and body mass index (BMI) to assess whether an applicant is overweight or obese, which may increase their risk profile. While being overweight alone is unlikely to result in a denial of coverage, weight-related health complications could lead to a rejection.

Weight and health

Body Mass Index (BMI)

BMI is a measure of body fat based on your height and weight. It is calculated by dividing your weight in kilograms by your height in metres squared (kg/m2). While it is a useful tool, it is not a perfect one. For example, a muscular athlete may have a high BMI but still be healthy.

Weight and Mortality Risk

People who are overweight are more likely to develop health conditions that reduce life expectancy and increase the risk of mortality. These include diabetes, high blood pressure, heart disease, and certain forms of cancer. As a result, insurance companies will often charge higher rates to people who are overweight to cover the elevated risk.

Weight and Life Insurance

Insurance companies use health and lifestyle factors to assess how risky you are to insure. This includes your health conditions, family history, and height-to-weight ratio. Each insurer has its own height-to-weight table, also called a build chart, which is similar to a BMI chart. Based on where you fall on that table, as well as your health history, the insurance company will assign you a health classification.

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 outside the company's guidelines will likely be assigned a lower health classification and higher rates.

It is rare for an insurance company to reject your application for being overweight or obese alone. However, being overweight can result in several related illnesses, which can lower your chance of scoring the best insurance premium. It can also mean that you have to consider no-medical insurance options, which tend to be more expensive and offer less coverage.

Improving Your Health Classification

If you need to lose weight, doing so before applying for life insurance could help you get a better health classification and lower rates. However, it's important to note that weight loss may not significantly impact your life insurance rates as much as you might expect. Most life insurance companies consider your average weight over two years, so they will only give you partial credit for weight loss within the previous 12 months.

If you are concerned about your weight or its impact on your health and insurance rates, consider speaking to a healthcare professional or a licensed insurance advisor. They can help you understand your options and make informed decisions about your health and finances.

BMI and health complications

Body Mass Index (BMI) is an approximate measure of an individual's total body fat. It is calculated by dividing their weight in kilograms by their height in meters squared. While it is a useful indicator of health at the population level, BMI is not always the best measure of health for an individual. This is because the distribution of fat on a person's body is more important than the amount when assessing their risk of disease. For example, increased abdominal obesity is related to a higher risk of cardiovascular disease, type 2 diabetes, and cancer.

Being overweight or underweight can affect a person's health. Generally speaking, the more body fat a person carries, the higher their health risk. If a person is overweight (with a BMI over 25kg/m2) and physically inactive, they may develop several health complications.

Health Complications of Being Overweight

If a person is overweight and physically inactive, they are at a higher risk of developing the following health complications:

• Cardiovascular (heart and blood circulation) disease
• High blood pressure (hypertension)
• Certain types of cancer, such as colon and breast cancer
• Depression and other mental health disorders
• Fatty liver diseases
• Gallbladder and pancreas diseases
• Sexual function problems
• Sleep apnea
• Asthma
• Osteoarthritis
• Gout
• Kidney disease
• Infertility

Health Complications of Being Underweight

If a person is underweight (BMI less than 18.5kg/m2), they may experience the following health complications:

• Malnourishment
• Compromised immune function

Limitations of BMI

While BMI is a useful tool for assessing health risks, it does have some limitations. For example, it may overestimate body fat in athletes and others with a muscular build. It may also underestimate body fat in older persons and others who have lost muscle mass. Additionally, BMI is not always accurate for individuals of different ethnic groups, as Asians and Indians tend to have more body fat at any given BMI compared to people of European descent.

Insurance rates and weight

Life insurance companies consider a variety of health and lifestyle factors when evaluating applicants for coverage. These include age, build, gender, health condition, and lifestyle choices such as smoking habits and occupation.

Weight is one of the factors that can impact the rates you receive for life insurance. If you are overweight or have a high BMI, the company may give you a higher price or deny coverage altogether if your weight is affecting other aspects of your health.

Insurance companies use height-to-weight tables, also called build charts, which are similar to Body Mass Index (BMI) charts. 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, also called 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 outside the company's guidelines for what is considered a normal weight 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 result in different classifications for the same person.

If your height-to-weight ratio falls within the range that a life insurance company considers overweight, you may have to pay more for life insurance than someone with the same health profile but a different height-to-weight ratio.

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. These factors include any health conditions you may have, your family history of medical conditions, and your height-to-weight ratio.

Each insurer has its own height-to-weight table or build chart, and they may also take into account other factors such as age, gender, and underlying health conditions.

If you are reasonably healthy, you may qualify for one of the preferred rate classes with lower premiums. However, if you are overweight, you may be more prone to health issues such as diabetes, high blood pressure, and heart disease, which can increase the risk of mortality. Consequently, insurance companies need to charge higher rates to cover this elevated risk.

It is rare for insurers to decline coverage based solely on weight. However, being overweight can result in several related illnesses, which can lower your chance of scoring the best insurance premium. It can also mean that you have to consider no-medical insurance options.

If you have severe weight-related health issues, such as limited mobility due to morbid obesity, you may be denied coverage. If you are denied coverage by one company, you may be able to find coverage with another insurer or by opting for a no-medical insurance policy.

Tips for buying life insurance if you are overweight

• Be mindful of when you apply: If you have a pre-existing condition, an insurer may turn you down if you apply shortly after diagnosis or a health event. You can always reapply if your health improves or your treatment is effective.
• Take advantage of improvements in your health: If you are accepted but are charged a high rate, you can ask for a life insurance re-rating and a lower premium once your condition is under control and your prognosis is positive.
• Find the right agent: Look for an independent life insurance agent who works with an impaired risk specialist. This is a broker who will know which insurance companies are more likely to provide a good rate for your particular condition.
• Compare quotes from different insurers: Insurance companies can vary in how they review specific health conditions, so shopping around can help you find the lowest rates for your weight and overall health profile.
• Don't lie about your weight: Misrepresenting your weight on your application is considered insurance fraud and could void your policy or result in a denied claim.

No-medical life insurance

Types of No-Medical Life Insurance

• Term life insurance: This type of policy provides coverage for a specific period, often with lower premiums than whole life insurance. Term life insurance is a good option for younger families or seniors who want to save money on premiums. However, the policyholder must pass away during the term for the beneficiary to receive the death benefit.
• Whole life insurance: This type of permanent life insurance provides coverage for the entire life of the policyholder, typically at a higher cost. Whole life insurance may be a good choice for those seeking long-term financial security for their family or exploring investment opportunities.

Cost of No-Medical Life Insurance

The cost of no-medical life insurance varies depending on factors such as age, lifestyle, coverage goals, and medical history. While no-medical life insurance can expedite the process of obtaining coverage, it may also come with higher premiums. Insurance companies take on additional risk when offering policies without a medical exam, and this is reflected in the cost of the policy.

When to Choose No-Medical Life Insurance

There are several scenarios in which no-medical life insurance may be a good option:

• You are in good health and want to save time by avoiding a medical exam.
• You have known health issues and need rapid coverage for funeral and burial expenses.
• You require immediate coverage for personal reasons, such as a high-risk occupation or pre-existing health conditions.
• You have a fear of needles or a general aversion to medical exams.

Considerations

While no-medical life insurance offers convenience and speed, there are some important considerations:

• Coverage limits: No-exam life insurance policies often have a cap on the coverage amount, which may not be sufficient for those seeking higher coverage to ensure their family's financial stability.
• Cost: No-exam life insurance policies typically come with higher premiums due to the increased risk for insurers.
• Health questionnaire: Most companies offering no-exam life insurance will still require you to fill out a health questionnaire, which may be in-depth depending on the insurer.

Applying for insurance: weight loss

Being overweight can impact the rates you receive for life insurance. While it is rare for insurers to decline coverage based on weight alone, it can be a factor in determining your monthly premiums. This is because being overweight can put you at higher risk of developing potentially life-shortening conditions, such as heart disease or diabetes.

If you are looking to reduce your insurance premiums, losing weight can be a good strategy. However, it is important to note that weight loss may not significantly impact your rates as much as you might expect. Most life insurance companies consider your average weight over two years, so sustained and stable weight loss is generally required to see a difference in your premiums.

If you have lost more than 10 pounds within the 12 months preceding your application, you will likely only receive partial credit for your weight loss. For example, if you initially weighed 250 pounds and lost 50 pounds in the past year, your rating would be adjusted to reflect a weight of 225 pounds instead of 200. To receive full credit for your weight loss, you would need to maintain your new weight for at least one year.

In addition to weight loss, there are other factors that can help improve your insurance rates. These include:

• Maintaining a healthy lifestyle: This includes a healthy diet, regular exercise, and regular check-ups with your doctor.
• Quitting smoking: Smokers typically pay higher life insurance rates.
• Improving your health conditions: If you have weight-related health issues, such as high blood pressure or diabetes, taking steps to manage or improve these conditions can help lower your risk profile.

It is also important to be honest on your insurance application. Lying about your weight or any other health factors can be considered insurance fraud and may result in your policy being cancelled or your beneficiaries' claims being denied.

Frequently asked questions