Health And Life Insurance: Understanding The Connection

When it comes to life insurance, your current health can have a significant impact on your premiums and coverage options. Insurance companies assess your health through a process called underwriting, which involves evaluating your medical history, treatments, prescription medications, and lab results. They also consider your body mass index (BMI) and may request a medical exam. Certain health conditions, such as high blood pressure, obesity, high cholesterol, cancer, and mental health issues, can lead to higher premiums as they increase the risk of more serious health problems. Additionally, insurance companies take into account your family medical history, especially if there is a history of hereditary or serious diseases. While you can still obtain life insurance with pre-existing health conditions, improving your health before purchasing a policy can help you secure lower premiums.

High blood pressure

According to the CDC, around one in three Americans suffers from high blood pressure, or hypertension. This condition increases the risk of heart disease and stroke, which makes sufferers a greater insurance risk. However, as long as your blood pressure is being managed with medication and diet, you will likely be able to find life insurance coverage.

Blood pressure ranges

In 2017, the American College of Cardiology issued new medical guidelines that dramatically reduced the definition of high blood pressure from 140/90 to 130/80. In life insurance underwriting, blood pressure within or close to the 120/80 range generally qualifies you for lower premiums, provided you don’t have other health concerns.

Influence of age

Older insurance applicants – those in their 50s, 60s or above – may see more leniency in rates associated with higher blood pressure numbers. Many life insurers will issue regular policies to this group even if their blood pressures are elevated. However, the older you are, the more you will pay for life insurance in general.

General health matters

Life insurance companies will consider high blood pressure in the broader context of your overall health. Lifestyle factors such as exercise, diet and weight will be assessed, and good results can mitigate against the risk of your high blood pressure. Non-smoking, in particular, will generally be a very significant factor in determining risk.

Tips for getting life insurance with high blood pressure

• Have regular doctor checkups: Being under the care of a medical professional and faithfully taking any prescribed medicines for your condition shows your insurer that you are doing everything possible to remain in good health.
• Avoid substances that can raise your blood pressure: Especially in the days before you undergo a medical exam for your policy, avoid coffee, alcohol, smoking and any other substances that might raise your blood pressure.
• Work with an independent agent: An independent agent or broker doesn't work for a single company and can help you look for the best options across a range of insurers.

Obesity

Life insurance companies use BMI to evaluate the likelihood of health issues that might lead to claims. A higher BMI can be associated with:

• Heart Disease: Excess fat can strain your heart.
• Diabetes: Obese individuals are at a higher risk of developing Type 2 diabetes.
• Hypertension: Obesity often leads to high blood pressure.
• Cancer: Certain types of cancer are more prevalent among those with higher BMIs.

These health risks mean insurers may charge higher premiums or offer limited policy options to mitigate their risk.

While a high BMI can impact your life insurance rates, it is not the only factor. Insurers consider other risk factors, including pre-existing health conditions, family medical history, and lifestyle habits such as smoking, alcohol consumption, and exercise frequency.

If you are obese, it is essential to shop around and work with an insurance professional to find the right policy for your needs and budget. Some insurers offer policies specifically designed for individuals with higher BMIs, and each company has unique underwriting criteria.

Additionally, improving your health through a healthy diet and exercise or medical interventions can positively affect your insurance rates. Submitting comprehensive health information, including detailed medical records and efforts to maintain or improve your health, can also be beneficial.

Mental health

Insurers will typically ask for detailed mental health information to understand the applicant's psychological well-being and potential risk. This includes diagnosis history, treatment history, the severity and frequency of symptoms, medication, hospitalizations or incidents, healthcare provider's notes, and functional impact. They are interested in how the condition affects daily living, work ability, and overall quality of life.

The type of mental health condition and its severity can impact the life insurance application process. For example, mild depression may be viewed as a manageable condition, whereas severe depression may be considered a more serious illness requiring a different type or level of healthcare. Similarly, combinations of multiple mental health issues increase the risk for insurance companies. The longer a person has had a mental health condition, the more likely they will have to apply to more than one insurer to get the desired coverage.

Life insurance companies view mental health as a significant factor in their risk assessment and underwriting processes. They will consider the potential impact of mental health conditions on an individual's life expectancy and overall risk profile. The goal is to assess the risk associated with insuring the individual, which in turn influences the terms and cost of the life insurance policy. If a condition is severe and increases the risk of health problems or shortens life expectancy, it can lead to higher premiums. On the other hand, effective management of a mental health condition can lead to lower rates.

When it comes to specific mental health issues, insurers closely examine conditions such as depression, bipolar disorder, schizophrenia, severe anxiety disorders, and borderline personality disorder. These conditions can significantly affect an individual's daily life and overall health, and insurers analyze how well these conditions are managed through medication, therapy, and other treatments. A well-managed mental health condition with a history of stable treatment and minimal impact on daily life can result in more favorable insurance terms. However, if the condition is severe, poorly managed, or has led to hospitalizations, it could result in higher premiums or limitations on coverage.

It is important to note that having a mental health condition does not automatically disqualify an individual from obtaining life insurance. Each insurance company has its own underwriting guidelines, and there are options available for those with mental health issues, such as group insurance or guaranteed life insurance plans. Additionally, seeking treatment for mental health issues is generally viewed positively by insurers and can lead to more favorable terms.

Tobacco use

Types of Tobacco Use

When it comes to life insurance, tobacco use is not limited to cigarette smoking. The use of any tobacco product, including cigars, nicotine patches, gum, and electronic cigarettes (e-cigarettes), is generally considered a risk factor by insurers. Even the occasional "celebratory cigar" can be enough to classify you as a tobacco user, although some insurers may be more lenient in this regard. Marijuana use may also be considered a form of tobacco use, depending on the insurer and the frequency of use.

Impact on Life Insurance Premiums

Honesty and Disclosure

It is crucial to be truthful about your tobacco use when applying for life insurance. Lying about your smoking status may seem like a way to avoid higher premiums, but it can lead to serious consequences. Insurance companies have various methods to verify your smoking status, including medical exams, reviewing medical records, and checking third-party databases. If they discover your dishonesty, they may cancel your policy, deny claims, or impose financial penalties.

Quitting Tobacco

Quitting tobacco can have a positive impact on your life insurance premiums over time. Most insurance companies require that you have been tobacco-free for at least 12 months before they will consider reclassifying you as a non-tobacco user and offering lower premiums. Some insurers may require a longer period, up to two years or more. Once you have reached this milestone, you can contact your insurer and request a review of your policy, which may include additional health questions or a medical exam.

Driving record

A person's driving record is a significant factor in determining their life insurance rates. When an individual applies for life insurance, the insurance company assesses their risk level, i.e., how likely they are to trigger a premature life insurance payout. This process is called underwriting, and it involves a thorough evaluation of the applicant's health history, family history, and driving record.

A person's driving record is a critical component of the underwriting process as it helps insurance providers gauge the level of risk associated with insuring that individual. A spotless driving record indicates a lower risk, whereas a history of speeding or other traffic violations suggests a higher risk. Insurance companies consider each case individually, weighing factors such as the severity and frequency of infractions and how recently they occurred.

Certain violations, such as Driving Under the Influence (DUI) or Driving While Intoxicated (DWI), are particularly problematic and can lead to higher insurance rates or even rejection of coverage. Most insurance companies require a minimum of five years to pass since a DUI or DWI violation before offering their preferred rates. Reckless driving is also viewed unfavorably and can result in similar consequences. Multiple speeding tickets within a short period can significantly increase premiums, as illustrated by the example of a gentleman who saw his annual premium jump from $1,490 to $1,913 due to three speeding tickets in the same week.

In addition to affecting insurance rates, a poor driving record can also impact an individual's ability to obtain life insurance coverage. A pattern of reckless driving or multiple DUIs may lead insurance companies to deem the applicant too risky to insure.

To improve one's driving record, it is advisable to take a driver safety course, contest questionable tickets, and practice safe and responsible driving habits. Additionally, working with an independent insurance broker can help individuals with imperfect driving records find the best available rates and coverage options.

Frequently asked questions