Haris Ashley
Life insurance rates are determined by a variety of factors, including age, gender, profession, and health. Insurance companies consider individuals with certain health conditions to be at a higher risk of passing away, so they charge more for policies they are more likely to pay out. As such, your weight can play a role in how much you pay or make it hard to find coverage in the first place. While being overweight does not automatically disqualify you from getting life insurance, it might affect your rate and the type of policy you qualify for.
| Characteristics | Values |
|---|---|
| Weight as a factor | Life insurance companies consider weight as one of the many factors to determine eligibility and risk. |
| Weight and health | Being overweight can indicate potential health problems and a higher risk of serious health complications, which can lower life expectancy. |
| Weight and rates | Being overweight may affect the rate and type of policy offered. Overweight individuals may be offered a higher rate, especially if they have other health issues. |
| Weight and eligibility | Being overweight does not automatically disqualify someone from getting life insurance. Overweight individuals can often qualify for traditional life insurance. |
| Weight and BMI | Insurers use height and weight to assess Body Mass Index (BMI) and then use a build chart to determine how BMI will affect eligibility and rates. |
| Weight loss and rates | Losing weight can lead to a better rate. Insurers consider sustained weight loss over at least a year as a positive factor. |
What You'll Learn
How weight impacts life insurance rates
Life insurance companies are in the business of managing risk. They use a variety of factors to determine an applicant's risk profile, which in turn influences their eligibility and the rate they are offered. One of the key factors in this assessment is an individual's weight.
Insurers use height and weight criteria to determine an applicant's risk. They will often refer to build charts, which indicate preferred best, standard plus, and standard rate limits. These build charts may be based on Body Mass Index (BMI), a ratio of weight to height, or simply on height and weight alone. BMI is calculated by taking an individual's weight in pounds and dividing it by the square of their height in inches, then multiplying that figure by a conversion factor of 703. A BMI of 18.5 or below is considered underweight, 18.4–24.9 is a healthy weight, 25.0–29.9 is overweight, and 30 or above is obese. While not a perfect measure, a high BMI can indicate a person carries excess weight, which may pose potential health problems.
Insurers will also take into account other factors such as age, gender, profession, lifestyle, and family medical history when determining risk.
Being overweight or obese will often result in higher insurance rates as it is considered a risk factor for other health complications. Overweight individuals can often still qualify for traditional life insurance, but they may face higher premiums. Insurers may 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. If an overweight individual also presents with other health issues, they may be offered an even higher rate.
However, being overweight does not automatically disqualify someone from getting life insurance, and if they are otherwise healthy, they may still qualify for a policy with a relatively low rate.
If you are denied life insurance coverage due to your weight, there are still options. You can reapply after working to improve the risk factors that made you uninsurable, such as making lifestyle changes to improve your overall health. You can also consider other types of insurance, such as accidental death insurance, final expense insurance, or voluntary life insurance through your employer. Additionally, working with an independent insurance agent who specializes in high-risk policies can help you find coverage options that may be more favorable toward overweight applicants.
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How life insurance companies determine your eligibility
Life insurance companies determine your eligibility by placing you in a risk class based on several factors, including your health, age, lifestyle, and family medical history. These factors help them assess your risk profile and determine what type of policy to offer and how much to charge for premiums.
Health
Your health is a significant factor in determining your eligibility for life insurance. Insurers will look at your medical history and consider any pre-existing conditions, such as high blood pressure, diabetes, or heart disease. They may also assess your Body Mass Index (BMI), which is a screening tool that categorises individuals as underweight, healthy weight, overweight, or obese. While not a perfect measure, a high BMI can indicate a person carries excess weight, which may pose potential health problems.
Age
Younger policyholders generally live longer and pose less risk to insurance companies, so age is another critical factor in determining eligibility.
Lifestyle
If you engage in dangerous hobbies, such as mountain climbing or skydiving, or have a high-risk occupation, such as a firefighter or pilot, you may be considered a higher risk and placed in a higher risk class. Lifestyle habits, such as heavy drinking, drug use, smoking, or lack of exercise, can also impact your eligibility.
Family medical history
If your family medical history includes immediate relatives who have died from certain conditions, such as heart disease or diabetes, it could affect your eligibility or result in higher premiums.
Other factors
Other factors that may be considered include your gender, as males are considered higher risk than females due to their shorter life expectancy, and your driving record, as reckless driving can indicate a risk-taking tendency.
While weight is an important factor in determining eligibility, it is not the only one. Life insurance companies consider a combination of these factors to assess your overall risk profile and determine your eligibility and premium rates.
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What to do if denied life insurance due to weight
Being denied life insurance due to weight can be frustrating, but there are steps you can take to address the situation. Here are some instructive guidelines to follow:
Understand the Reasons for Denial
Firstly, it is important to understand why your application was denied. Contact the insurer or a financial professional to gain insight into the specific reasons for the denial. This will help you identify the areas that need improvement or clarification.
Verify the Information
Ask for confirmation of the results. If poor health or weight-related issues are cited as the reason for denial, consult your physician to ensure an accurate assessment of your health. It is crucial to verify the information provided by the insurer and cross-reference it with your medical records.
Appeal the Decision
If you believe the denial is based on incorrect or insufficient information, you have the right to appeal the decision. Gather up-to-date information from your doctor, including your medical history and current health status. You can also submit additional personal information, such as your credit report, driving record, or updated occupation details. A comprehensive and timely appeal improves your chances of a successful outcome.
Work with a Financial Professional
Consider seeking assistance from a financial professional who has experience working with multiple insurers. They can guide you in navigating the application and appeal processes and help you identify insurers that are more likely to approve your application. Some financial professionals specialise in assisting higher-risk individuals in obtaining life insurance.
Explore Alternative Options
If you've been denied by one insurer, it's worth applying to different insurers, as each company has its own criteria for approvals. You can also explore alternative policy options, such as simplified issue life insurance or guaranteed issue life insurance, which have higher approval rates but may come with limitations and higher costs.
Improve Your Health and Reapply
Consider using a waiting period to focus on improving your health and addressing any weight-related complications. Losing weight and maintaining a healthier lifestyle can increase your chances of approval in the future. Maintaining a healthy and consistent BMI for at least 12 months can positively impact your insurance application.
Remember, being denied life insurance due to weight is not uncommon, and there are steps you can take to improve your chances of obtaining coverage. Don't hesitate to seek professional guidance and explore alternative options to secure the financial protection you need.
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The impact of weight loss on life insurance rates
Life insurance companies use height and weight criteria to determine your life insurance rate. They consider individuals with certain health conditions to be at a higher risk of passing away than healthy individuals. Obese individuals are at an increased risk of serious health complications, including hypertension, type 2 diabetes, stroke, heart disease, and cancer. Being underweight also has health risks like anemia, osteoporosis, and decreased immune function. These health conditions can lower your life expectancy and will appear as risk factors to life insurance underwriters.
Insurers compare your body mass index (BMI) against their own "build chart" to determine how your BMI will affect your eligibility and rate. They use your height-to-weight ratio to determine whether you are overweight or obese. A higher BMI and weight usually indicate higher body fat, but this is not always true. Similarly, an average BMI and weight do not always indicate good health.
People who lose enough weight to improve their height-to-weight ratio and move from one category to another can get a better rate. However, insurers can look at your full health history, and if you recently lost weight, a company might use your starting weight to determine your risk.
If you are denied life insurance due to your weight, you can always reapply after working to improve the risk factors that made you uninsurable. You can also consider other insurance options, such as accidental death insurance, final expense insurance, or voluntary life insurance.
Should you lose weight before getting life insurance?
It is not recommended to wait to apply for life insurance if you are considering losing weight. There is no cost to apply, and you can always decline the insurance company's offer if the premiums don't fit your budget. If you apply and are approved, accept the coverage if you can afford the premiums, even if they are higher than expected. If you wait, your health may decline, and you could be deemed uninsurable.
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How to get the best life insurance rates for your body type
Life insurance companies use your height-to-weight ratio to determine whether you are overweight or obese. They then use something called a build chart to determine how your weight will affect your eligibility and rate.
Build charts
Life insurance companies publish build charts in their underwriting guidelines. While many companies still use height/weight charts, some have begun switching to BMI charts. Carriers will indicate preferred best, standard plus, and standard rate limits.
Positive factors
If you're overweight, look for positive factors that can be used to benefit you. These include:
- A recent cardiac workup (in the past 12 months) with favourable results
- Controlled blood pressure
- Well-controlled cholesterol levels
- A consistent exercise regimen
- Preventative screenings for cancer and heart disease
- Discontinuing tobacco
Negative factors
On the other hand, negative factors that affect underwriting include:
- Heart problems such as a heart attack or abnormal EKG
- Endocrine disorders such as diabetes
- Respiratory problems such as asthma
What to do if you're denied life insurance due to weight
If you've been denied life insurance, don't lose hope. You can always reapply after working to improve the risk factors that made you uninsurable. Coverage denial isn't usually due to weight alone. For example, if you are denied because your blood pressure or cholesterol is too high, you can make lifestyle changes to improve your overall health without fixating on weight loss.
In the meantime, you may want to consider accidental death insurance, final expense insurance, or voluntary life insurance.
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Frequently asked questions
Being overweight doesn't automatically disqualify you from getting life insurance, but it might affect your rate and the type of policy you qualify for. Life insurance companies evaluate an applicant and offer a rate based on their risk, but each company calculates risk differently. If you have serious health complications, you may be denied coverage.
Life insurance companies set rates based on how risky they determine you to be or how likely you are to die during the policy's term. They consider your height-to-weight ratio, which can help determine if you qualify as overweight or obese in a medical sense. They also use your body mass index (BMI) to assess whether you might be a high-risk applicant due to your weight.
If you've been denied life insurance, don't lose hope. You can always reapply after working to improve the risk factors that made you uninsurable. You can also consider other insurance coverage options such as accidental death insurance, final expense insurance, and voluntary life insurance.
