Life Insurance For The Obese: Who Qualifies?

Life insurance is a tricky business, and it can be difficult to qualify if you have a pre-existing condition. Obesity is considered a pre-existing condition by many insurers, and it can put you at a higher risk of developing potentially life-shortening conditions, such as heart disease or diabetes. This means that your weight and height will be taken into account when setting premiums, and you may be charged a higher rate or even denied coverage. However, this is not always the case, and it's important to shop around and compare rates from different insurers, as their definitions of obesity and their policies on covering obese people vary.

Life insurance for obese people: availability and cost

Availability

Life insurance is available to most obese people, but the options and costs will vary depending on the insurance company and the individual's overall health, age, gender, and lifestyle. While obesity can increase the risk of developing serious health conditions, it is rare for insurers to decline coverage based solely on weight.

Cost

The cost of life insurance for obese individuals will depend on various factors, including weight-related and other health complications, family medical history, lifestyle habits, and the company's categorization of BMI. Obese individuals can often qualify for traditional life insurance, but they may face higher rates compared to those with lower weights.

Tips for Obtaining Life Insurance as an Obese Individual

• Work with an independent agent to find the best company and coverage for your needs.
• Compare quotes from different insurance companies to get the most affordable rates.
• Be honest about your weight and health on the application, as misrepresenting your information could result in denied benefits.
• Consider losing weight before applying, as a lower BMI may result in lower premiums.
• Apply for a guaranteed issue policy if you have been denied traditional coverage due to obesity and other pre-existing conditions. However, these policies tend to be more expensive and offer lower death benefits.

How obesity is defined and measured

Obesity is defined as having too much body fat. It is a chronic and complex disease that can affect your overall health and quality of life. Obesity is commonly defined based on the metric, body mass index (BMI).

BMI is used to measure someone's weight in relation to their height. It follows the logic that, on average, taller people might be heavier. BMI is calculated by dividing someone's weight (in kilograms) by the square of their height (in meters). The BMI scale defines the following categories:

• Underweight: a BMI equal to or less than 18.5
• Healthy: a BMI between 18.5 and 24.9
• Overweight: a BMI between 25 and 29.9
• Obese: a BMI equal to or greater than 30

For both adult men and women, obesity is defined as having a BMI of 30 or higher. However, it is important to note that BMI is not a perfect metric for understanding health risks associated with weight and body composition. It treats all body mass, including fat, muscle, organs, and bone structure, as equally risky for health.

Other measures, such as waist circumference or waist-to-hip ratio, may provide a better indication of health risks than BMI alone. Additionally, the 'optimal' healthy weight varies from person to person, and the defined 'healthy BMI' range accounts for individual variability.

While obesity is typically defined using BMI, healthcare providers may also use other measures, such as body shape and waist circumference, to classify obesity. They may also perform body composition tests, such as bone density scans or bioelectrical impedance analysis, to assess body composition.

How to get the best rates

How to Get the Best Life Insurance Rates if You're Overweight or Obese

While being overweight or obese won't automatically disqualify you from getting life insurance, it might affect the rate you get and the type of policy you qualify for.

Find cheap life insurance quotes in your area:

It's free, simple, and secure to get quotes from different insurers and compare rates. Shopping around can help you find the lowest rates for your weight and overall health profile. Some companies, like Guardian Life, Prudential, and John Hancock, offer more lenient build guidelines and may be good places to start.

Be honest about your health and lifestyle:

When applying for life insurance, always be truthful about your health and lifestyle. Include all relevant health information, especially if you follow a healthy diet, exercise regularly, and are monitored by your doctor. If you have overweight but no other issues, you may still qualify for the best life insurance ratings.

Include additional health information:

If you have a high BMI but a low body fat percentage, or if you're an athlete with a high chest-to-waist ratio, be sure to mention this. Insurance companies don't want to exclude people who are very fit despite having a high BMI, so providing this information may help you get credits and improve your rating.

Prepare for the life insurance medical exam:

Schedule your medical exam for first thing in the morning, when you've fasted, to get the best rating. Your weight can fluctuate throughout the day, so an early exam removes some of this variability.

Ask about a new medical exam after weight loss:

If you've lost weight after buying your policy, ask your insurance company if you can get a new medical exam. If you've been able to keep the weight off, you may be able to qualify for a better rating and lower premiums.

Reapply for new coverage after significant weight loss:

If you've lost a significant amount of weight, you may be able to lower your life insurance rates by reapplying for new coverage. Your rates could come back lower, especially if you've changed your health classification.

Consider working with an independent agent:

Consider working with an independent life insurance agent who can help you compare quotes from different insurance companies and find the best rates for your specific circumstances. They can also advise you on which companies are more flexible about certain health conditions.

Remember, it's important to be honest on your life insurance application. Misrepresenting your health could result in your application being denied or your beneficiaries' claims being rejected in the future.

What to do if you're denied coverage

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

Being denied life insurance coverage due to obesity is rare, but it can happen if you are morbidly obese and have other health conditions. If you are denied coverage, there are several steps you can take:

• Contact your financial professional and/or the insurer: They can confirm that no mistakes were made on your application and give you insight into why you were denied coverage.
• Check with your physician: If poor health is the reason for the denial, consult your doctor to ensure there is a valid cause for concern.
• Consider appealing the decision: If you are denied coverage based on incorrect or insufficient information, you have the right to appeal the decision. Submit timely and complete information, including up-to-date medical records and recent credible information about your personal history, such as your credit report, driving record, or occupation.
• Work with a financial professional: A financial professional who works with multiple insurers can help you apply to those with the best chances of approval. They can also assist with the application and appeal process. Some even specialize in helping higher-risk individuals obtain life insurance.
• Apply with a different insurer: Each insurer has different criteria for approvals, so try applying with another insurer before giving up.
• Look into a workplace life insurance plan: You may be able to gain coverage through your employer's group life insurance plan, which typically doesn't require a medical exam.
• Try again later: Use a waiting period to improve any health conditions, quit smoking, clean up your driving record, and improve your finances. Showing progress in these areas can increase your chances of approval.
• Consider a different life insurance policy: Simplified issue life insurance offers a quick online application process and a high approval rate, although coverage limits tend to be low and costs are often higher. Guaranteed issue life insurance guarantees coverage for anyone who applies, but there is often a waiting period before a full payout, and coverage costs are higher.
• Work with an independent agent: An independent agent will know which insurers are more favourable towards obese applicants and can generate multiple quotes to give you a full range of options. They can also help you find insurers that specialise in high-risk policies.
• Shop around for quotes: If you prefer to do your own research, there are resources available to help you find the cheapest life insurance. However, it's important to consider not just price but also customer service ratings, financial stability, and the range of policy offerings.
• Look into group insurance: If you have an employer that offers group life coverage, you may be able to get cheaper coverage, especially if you work in a high-risk occupation.

Remember, it's always a good idea to consult a financial professional for guidance throughout the process.

How to find the best insurance company for you

Finding the best insurance company for your needs can be a challenging task, but it is worth investing time in as it can save you money and provide peace of mind. Here are some tips to help you navigate the process and find the right insurer for your circumstances:

Understand Your Needs

Firstly, you need to identify your unique needs and pain points. Consider your budget, financial risk tolerance, and driver profile. For example, recent marks on your driving record or a less-than-perfect credit score can increase your insurance rates. By understanding your specific situation, you can identify insurers that specialise in catering to drivers like you.

Decide on the Level of Coverage

The next step is to determine the level of coverage you require. Outline the minimum coverage mandated by your state and any additional requirements stipulated by your lender. Full-coverage insurance is usually optional, but it is worth considering if you have an expensive car or cannot afford repairs after an accident. While a liability-only policy may be cheaper, purchasing higher liability limits is generally recommended.

Research and Compare

Research different insurance companies and compare their quotes. Prioritise the factors that are most important to you, such as price, customer satisfaction, or the reliability of their claims process. Utilise resources like J.D. Power, AM Best, and the NAIC to assess customer satisfaction, financial strength, and the frequency of customer complaints.

Consider Lesser-Known Insurers

Don't just focus on the big-name insurers. The insurance industry is vast, and smaller companies can often offer competitive rates and specialised services. They may cater to specific regions or customer demographics, so it's worth exploring all options.

Get Multiple Quotes

Finally, the most crucial step is to obtain quotes from multiple insurers. This can be done efficiently through insurance comparison websites, which allow you to compare rates and coverage options from a wide range of companies simultaneously. By following these steps, you can make a well-informed decision and select the best insurance company for your needs.

Frequently asked questions