Obesity And Life Insurance: What's The Connection?

Life insurance is available to most obese people, but it depends on the insurance company and the individual's overall health, age, gender, and lifestyle. While obesity is usually associated with higher premiums, some insurance companies are more lenient with Body Mass Index (BMI) requirements and offer lower rates for obese individuals. Obesity is often considered a risk factor by insurance companies because it may be indicative of other health conditions such as heart disease, diabetes, and hypertension.

How obesity is defined by insurance companies

Insurance companies use a variety of methods to determine whether an individual is obese. While some companies rely on Body Mass Index (BMI) to determine obesity, others use a more lenient definition.

BMI is a measure of body fat based on an individual's weight in relation to their height. A BMI of 19-24 is considered healthy, 25-29 is overweight, and anything above 30 is obese. However, BMI is not a perfect measure of body fat as it does not take into account body composition. For example, a muscular athlete may have an "overweight" BMI despite being healthy.

Some insurance companies have much different definitions of obesity than the standard BMI tables. For example, Prudential, one of the best companies for obese individuals, has very lenient build guidelines. During the same month that one source's doctor told them they were obese, Prudential approved them at a preferred risk. They could have weighed 23 pounds more and still received the same rate.

Other companies may be stricter and consider abdominal obesity as unfavourable, even if an individual's overall BMI is within a healthy range. Abdominal obesity is when the abdominal girth measured around the waist exceeds the maximum measurement around the hips. This can be correlated with the risk of cardiac disease and stroke, independent of body weight.

Overall, the definition of obesity by insurance companies varies and is not always strictly based on BMI. It is important for individuals to work with independent agents to find the right company and coverage for their needs, as each company has its own standards for determining risk.

The impact of obesity on life insurance rates

In the US, obesity is extremely common, with more than 3 million Americans diagnosed with obesity every year. While it is possible for obese people to get life insurance, their weight and height will be taken into account when setting premiums. This is because obesity can put people at higher risk of developing potentially life-shortening conditions, such as heart disease or diabetes.

How insurance companies determine your rating category

Insurance companies determine your rating category and the price you pay. They base it in part on a build chart that's similar to a Body Mass Index (BMI) calculation. Typically, the rating categories are:

• Preferred Plus: People in excellent health with no history of medical issues. If you're over the ideal weight for your height by more than a few pounds, you're unlikely to receive this rating.
• Preferred: If you have had a minor medical issue or a family history of moderate conditions, but are otherwise in great health, you'll likely qualify for a Preferred rating.
• Standard Plus: Typically includes people in good health who have a negative family history or a single condition that exempts them from qualifying for a Preferred rating.
• Standard: People of average health who may have a couple of common but manageable issues, such as high cholesterol or blood pressure. There's also a Standard rating for smokers. If you have overweight, and particularly if you have obesity, you'll likely receive a Standard rating.
• Table Ratings: High-risk applicants. Unless you have a very high BMI, it's unlikely you'd receive a Table Rating for life insurance based on your weight alone.

How your weight affects your life insurance rating

If you have overweight or obesity, your life insurance rates may be higher. However, unless you have severe weight-related health issues, such as limited mobility due to morbid obesity, you're unlikely to be rejected for coverage. If you're an athlete or have a high BMI but low body fat percentage, you'll likely be able to receive credits from an insurance company to qualify for the best life insurance ratings.

What to do if you're denied life insurance due to your weight

In most cases, you won't be denied life insurance coverage solely due to a high BMI. Even if one company refuses to cover you, another would likely offer you a policy. Failing to qualify for life insurance with multiple companies usually only happens if you have morbid obesity and other health conditions.

If, for some reason, you can't get a standard term or permanent life insurance policy due to issues linked to your BMI, try losing weight and then reapplying for coverage. Even though life insurance companies will only give you partial credit for major weight loss in the previous 12 months, you're more likely to qualify for the policy of your choice.

But, if you need coverage immediately and are unable to qualify elsewhere, you may want to consider a guaranteed acceptance life insurance policy. As the name suggests, these policies guarantee acceptance, no matter your weight. However, there are a few downsides:

• They provide very limited coverage — usually no more than $25,000.
• Guaranteed acceptance policies cost more than standard life insurance policies per dollar of coverage.
• If you die in the first two to three years after buying the policy, your beneficiaries would only receive a partial payout, unless the death was accidental.

Strategies for obtaining affordable coverage

You may face challenges in finding affordable traditional life insurance coverage if you're considered medically overweight or obese, but there are some things you can do to minimize life insurance costs:

• Work with an independent agent: An independent life insurance agent will know which life insurance companies are more favorable toward overweight and obese applicants. These agents will be able to generate multiple quotes from providers so you have a full list of options to choose from.
• Shop around for quotes: If you prefer to do the work on your own, there are several resources you can access to find the cheapest life insurance. However, we do not recommend relying on price alone. It also helps to look at customer service ratings and consider the company's range of policy offerings for term and whole life insurance.
• Look into group insurance: If you have an employer that offers employees group life coverage, you might get cheaper coverage than on your own. This is common in high-risk occupations where employers want to protect employees who may have difficulty getting individual coverage.

What to do if you're denied life insurance due to obesity

Being denied life insurance due to obesity can be frustrating, but there are several steps you can take to obtain coverage. Here are some options to explore:

• Shop around for different insurers: Different life insurance companies have varying standards and guidelines for obesity. Some companies may be more lenient than others in terms of their BMI requirements. Working with an independent agent who represents multiple insurers can help you find the right company with more favourable rates.
• Improve your overall health: If obesity is not your only health concern, work on improving your overall health. Address any weight-related health issues, such as high blood pressure or high cholesterol. Consider changing your diet and lifestyle habits to showcase a commitment to a healthier lifestyle. This can positively impact your application.
• Consider a guaranteed issue life insurance policy: If traditional life insurance options are not available to you, consider a guaranteed issue life insurance policy. These policies typically offer limited coverage (up to $25,000) and are more expensive, but they don't require a medical exam or health questions. They are designed for individuals who have been denied coverage due to health issues.
• Explore no-exam life insurance options: No-exam life insurance policies don't require a medical exam and may be more convenient and flexible. However, they tend to be more expensive and offer limited coverage. Be sure to carefully review the pros and cons of these policies before deciding.
• Lose weight and reapply: Losing weight can improve your chances of obtaining life insurance. However, keep in mind that insurance companies may average your current weight with your previous weight to determine your long-term weight trends. They do this because people who have recently lost weight may experience rapid weight gain. Intentional weight loss through non-surgical methods over a sustained period will reflect more positively on your application.
• Be honest on your application: Always be truthful about your weight and health status on your life insurance application. Misrepresenting your weight may result in your application being denied or your policy being cancelled. Include relevant information, such as a high BMI with a low body fat percentage, as this may improve your rating.
• Work with a life insurance broker: A knowledgeable life insurance broker can guide you through the process and help you find insurers that are more accommodating to individuals with obesity. They can assist in comparing rates and finding the best policy for your specific situation.

The pros and cons of no-exam life insurance

No-exam life insurance is a good option for those who want to skip the tedious process of a medical exam, which includes answering a lengthy health questionnaire, providing blood and urine samples, and undergoing a physical examination. This type of insurance is especially beneficial for high-risk individuals, such as those with pre-existing conditions, who may struggle to qualify for traditional insurance policies. The simplified application process of no-exam life insurance can result in quicker coverage, sometimes within a few days or even 24 hours.

Pros of No-Exam Life Insurance

No-exam life insurance offers several benefits, including:

• No medical tests: The biggest advantage is that applicants can skip the usual blood and urine tests associated with medical exams.
• Faster approval: No-exam insurance often leads to quicker approval since there is no need to schedule and wait for medical appointments and their results.
• More accessible: This type of insurance is more inclusive for people with needle phobia or doctor/exam anxiety.

Cons of No-Exam Life Insurance

However, there are also some drawbacks to consider:

• More expensive: No-exam life insurance is typically more costly because the insurer takes on more risk without the comprehensive health information provided by a medical exam.
• Limited coverage: No-exam policies often have lower coverage limits, ranging from $5,000 to $25,000 for guaranteed issue policies, and fewer riders compared to traditional policies.

How to get the best life insurance rates if you're obese

Being obese doesn't necessarily mean you will be denied life insurance coverage, but it can make it more difficult and expensive to obtain. Here are some tips to help you get the best life insurance rates if you're obese:

• Apply with the right company: Some top-rated life insurance companies specialize in applicants who are obese. Prudential, for example, is known for its lenient build guidelines and affordable rates for obese individuals, especially after the age of 60. Banner Life, Protective Life, AIG, Pacific Life, and Guardian Life are also good options.
• Work with an independent agent: An independent agent can help you compare quotes from multiple companies and find the best rates and coverage for your specific needs. They can also guide you through the application process and ensure you're applying with the right company for your health profile.
• Improve your health: Losing weight, improving your diet, and adopting a healthier lifestyle can help you get better life insurance rates. Even a small amount of weight loss can make a difference, but be sure to do it gradually and sustainably.
• Be honest on your application: Lying about your weight on a life insurance application is considered fraud and can result in your policy being cancelled or your beneficiaries' claims being denied. It's always best to be truthful and provide as much relevant information as possible.
• Compare quotes from multiple insurers: Different insurance companies have different rating systems and criteria for determining rates. By comparing quotes from several insurers, you can find the best rates and coverage for your situation.
• Consider a no-exam policy: If you're unable to qualify for a traditional life insurance policy, you may want to consider a no-medical-exam policy. These policies are typically more expensive and offer less coverage, but they can be a good option if you're obese and have other health issues.
• Get a medical exam early in the day: Your weight can fluctuate throughout the day, so scheduling your medical exam for first thing in the morning can help you get a more accurate reading and potentially improve your rating.
• Reapply after weight loss: If you lose weight, you may be able to qualify for better rates by reapplying for life insurance or asking your current insurer to reassess your health statistics.
• Consider group life insurance through your employer: Many people, including those with health issues, can obtain basic group life insurance through their employers. This option may be more accessible and affordable if you're obese.

Frequently asked questions