Life Insurance Post-Bariatric Surgery: What You Need To Know

Bariatric surgery, or weight loss surgery, can be a life-changing procedure for individuals with a minimum BMI of 40 or a BMI of 35 with significant medical complications associated with obesity. The surgery helps treat obesity by altering the digestive process and has been shown to produce effective weight loss. However, it is an expensive procedure, often costing tens of thousands of dollars. As a result, many people wonder if their insurance will cover the surgery and if they can get life insurance after the procedure. The answer to both questions is yes, but there are some things to keep in mind.

Life insurance after bariatric surgery: what companies look for

Bariatric surgery can be life-changing, but it's also expensive, often costing tens of thousands of dollars. Many people wonder how this type of surgery will affect their life insurance and what companies look for when assessing their application. Here's what you need to know about getting life insurance after undergoing bariatric surgery:

Types of Bariatric Surgery and Waiting Periods

Firstly, it's important to understand that there are different types of bariatric surgeries, each carrying a different level of risk. The most common types are:

• Roux-en-Y gastric bypass
• Gastric banding
• Sleeve gastrectomy
• Biliopancreatic diversion

The type of surgery you've had will impact when you can apply for life insurance. For Roux-en-Y gastric bypass, which is the most common type, it's recommended to wait for approximately six months after surgery before applying for coverage. For gastric banding, some carriers are willing to consider coverage as early as three months post-surgery. For sleeve gastrectomy and biliopancreatic diversion, companies typically ask for a waiting period of six to twelve months.

Common Requirements by Insurance Companies

When assessing your application for life insurance after bariatric surgery, insurance companies will want to know several things. Here are some common questions they may ask:

• When was the surgery completed?
• What type of surgery did you have?
• Where was the surgery completed?
• What was your weight before the surgery?
• Are you going for regular follow-up check-ups?
• Were there any complications during or after the surgery?

Insurance companies will also want to see detailed medical records before and after your surgery to ensure your overall health is improving. They may request specific information about your weight loss history, including any past attempts at weight loss, as well as documentation from your doctor.

Health-Related Factors

In addition to the information about your surgery, insurance companies will also consider your overall health when evaluating your application. They will look at your weight loss and whether you've had any health complications before or after the surgery. They will also focus on your current weight, as life insurance companies will often add half of the weight you lost in the past 12 months to your current weight when assessing your application.

Insurance companies will also want to know if you've had any history of associated chronic diseases, such as diabetes, hypertension, hyperlipidemia, obstructive sleep apnea, or cardiovascular disease. They may request a nutritional evaluation and a psychological evaluation to understand your reasons for seeking bariatric surgery and your understanding of the lifestyle changes it entails.

Underwriting Criteria and Table Ratings

When it comes to underwriting life insurance, different insurance companies will have varying criteria and levels of leniency. Some companies may offer more favourable rates for those with a history of bariatric surgery and obesity. To get the best rates, it's recommended to work with a life insurance broker who has access to multiple insurance companies.

If you've had bariatric surgery, you may not qualify for the preferred risk classes, which offer the best rates. Instead, you may receive a table rating, where the insurance company approves your application but at a higher rate than the standard. The higher the table rating, the more expensive the premiums will be.

Sample Scenario

Here's an example to illustrate how the underwriting process and table ratings work:

John, who is 40 years old, underwent gastric banding surgery a year ago. Before the surgery, he weighed 450 pounds and has now steadily lost weight, reaching 300 pounds with a BMI of 43.05. He has no severe health conditions related to his obesity. John applies for a 20-year, $300,000 term life insurance policy.

In this case, the insurance company sees two main risk factors: John's recent surgery (only one year ago) and his still severely obese BMI. John's agent suggests he gets a note from his doctor detailing his progress and expected continued success. The insurance company decides to offer coverage but with a Table 7/G rating. John's annual premium is $1,056.32, which is higher than the standard rate.

Recommendations

If you're seeking life insurance after bariatric surgery, it's important to be prepared for the application process and potential challenges. Work with a knowledgeable broker who can guide you through the process and match you with the most favourable insurance company for your situation. Be ready to provide detailed information about your surgery and health history. Remember that getting approved for life insurance after weight-loss surgery is possible, but there may be some hurdles along the way.

Common things companies want to know

When applying for life insurance after bariatric surgery, underwriters will want to know a lot of information about your health and medical history. Here are some of the most common questions they will ask:

• When was the surgery completed?
• What type of surgery did you have?
• Where was the surgery completed?
• What was your weight before the surgery?
• How often do you go for follow-up check-ups?
• Were there any complications during or after the surgery?
• What is your current height and weight?
• Do you have a history of associated chronic diseases, such as diabetes, hypertension, hyperlipidemia, obstructive sleep apnea, or cardiovascular disease?
• Do you have any functional limitations?

In addition to these questions, the insurance company will also want to see your medical records, including documentation of your weight loss efforts and any psychological or nutritional evaluations completed as part of the surgery process. They may also request specific diagnostic tests, such as cardiac, pulmonary, or sleep apnea evaluations, if you have symptoms of weight-related conditions.

It's important to be honest and forthcoming when providing information to the insurance company. Working with a life insurance broker can also be helpful, as they have access to multiple insurance companies and can find the best match for your specific situation.

Things that may affect your application

Complications

If you have had any complications from the surgery, such as blood clots, infection, diarrhoea, or internal bleeding, this may affect your application. While minor complications such as abdominal pain or leakage may not be a big issue, it's important to disclose any health issues to the insurer.

Time since surgery

Insurers often require a significant amount of time to pass after bariatric surgery before considering an application. Generally, a waiting period of 6-12 months is recommended to ensure stability and reduce the risk of complications.

Type of surgery

The type of bariatric surgery you underwent will impact your application. Roux-en-Y gastric bypass, sleeve gastrectomy, and biliopancreatic diversion are generally considered more invasive and carry a higher risk. Gastric banding, on the other hand, is considered safer and may have a shorter waiting period.

Weight loss and BMI

Insurers will consider your current weight and BMI when evaluating your application. They may also add half of the weight you lost in the past 12 months to your current weight for their calculations. Additionally, they may request detailed records of your weight before and after the surgery, including follow-up appointments and lab results.

Health conditions

Any associated chronic diseases or health complications, such as diabetes, hypertension, hyperlipidemia, obstructive sleep apnea, or cardiovascular disease, will be taken into account. The insurer will want to assess the overall picture of your health, not just your weight.

Lifestyle factors

Insurers may inquire about your diet, exercise regimen, and lifestyle choices. They want to see your commitment to a healthy lifestyle and any efforts to maintain a stable weight after the surgery.

What policy you can get after surgery

After bariatric surgery, you can get a modified/graded option policy, which includes traditional term insurance, permanent insurance, and accidental death coverage.

Modified/Graded Option

This policy offers coverage from day one, meaning you don't have to wait for any benefits to kick in. It includes:

• Traditional term insurance: This is a form of temporary insurance that usually has a lower cost and allows for a higher coverage amount. However, it does not build cash value and has an expiration date.
• Permanent policy: This type of policy could last a lifetime, depending on how it is set up to address your needs. Permanent policies include Universal life and whole life insurance.
• Accidental policy: This policy offers day-one coverage but limits the cause of death to accidents only. While it excludes death from natural causes or illnesses, it is still valuable due to its affordability and substantial death benefits.

Modified/Graded Benefit Policy

This policy does not offer day-one coverage for natural causes and illnesses. There is typically a two-year waiting period before full benefits become available.

How much will the premiums cost?

The cost of your life insurance premiums will depend on a number of factors, including the type of surgery you've had, the severity of any complications, and the amount of time that has passed since your procedure.

Firstly, it's important to note that the type of bariatric surgery you've had will impact your premiums. Roux-en-Y gastric bypass, for instance, is the most common type of bariatric surgery and typically requires a waiting period of around 6 months before you can apply for coverage. Gastric banding, on the other hand, is considered less invasive and some carriers may be willing to provide coverage as early as 3 months post-surgery. Sleeve gastrectomy and biliopancreatic diversion are also options, with the former becoming increasingly popular and the latter being a less common procedure with more potential complications.

The presence and severity of any complications arising from your surgery will also influence your premiums. If you've experienced only minor complications, such as abdominal pain or leakage, and these issues are under control without any permanent damage, they are unlikely to significantly impact your rates. However, moderate to major complications, such as persistent bloating, leaks, or weight fluctuations, can result in higher premiums or even a decline of traditional life insurance.

The amount of time that has passed since your surgery is another crucial factor. Generally, it is recommended to wait for at least 6-12 months after bariatric surgery before applying for life insurance to ensure that there are no complications and your health is stable. The longer the time since your surgery, the better your chances for a favourable outcome and more affordable premiums.

In terms of specific costs, it's challenging to provide precise figures as these vary depending on the insurance company and your individual circumstances. However, as a general rule of thumb, each level below the standard rate is approximately 25% more expensive. For instance, a mild-substandard rate would be about 50% higher than the standard rate.

It's worth noting that obtaining life insurance after bariatric surgery may result in higher premiums compared to standard rates, as insurers view this as an increased risk. Nonetheless, it is still possible to find affordable coverage, especially if you work with an independent insurance agent who has experience placing such cases. They can help you navigate the underwriting process, determine the appropriate amount of coverage, and find the most favourable rates based on your health history.

Frequently asked questions