Life insurance for weight loss
As you get older and have a family, one of the most important steps you can take to ensure the financial well-being of your loved ones is getting life insurance. Life insurance protects your beneficiaries when you die by providing a death benefit that can cover everything from funeral expenses and outstanding debts to daily living expenses and future study costs.
Your weight can have a significant impact on your risk factor, which can mean the difference between a lower or a higher insurance premium. Here’s a quick rundown of how losing weight is changing your life insurance policy.
How health and weight affect life insurance premiums
The premium for your life insurance can be determined based on your age, gender, occupation and, above all, your health. Life insurers assume that people with certain health conditions are at higher risk than people who are healthy. From the insurance company’s point of view, they want to bill you enough that they don’t lose money by paying a death benefit, especially on a term policy that is betting that you will survive the term. Therefore, a young and healthy person has fewer risk factors and a lower death rate.
Life insurance companies use construction diagrams to determine the relationship between your height and weight, which are then compared to mortality rates within your construction type to determine your risk rating. If your weight is below or above the preferred ratio, you will likely be classified as a higher risk applicant and therefore pay higher premiums and in some cases you will be denied coverage altogether.
Obese people are at increased risk of serious health complications such as high blood pressure, type 2 diabetes, stroke, heart disease, cancer, and mental illness. Being underweight also has its own health risks such as anemia, osteoporosis, and decreased immune function. These health conditions can shorten your life expectancy and will appear as risk factors to life insurance insurers.
Lose weight and save money
Life insurance is a great investment for your future regardless of your body type. If you are in the life insurance market but are currently overweight or obese, you may think that shedding some weight before applying for insurance is a good idea. However, just because you have lost weight does not necessarily mean you have a lower premium, as other factors, such as your age or conditions related to obesity, may continue to affect your risk score.
While it’s true that a healthy weight can translate into a lower premium, if you don’t lose the weight right away, chances are you’ll postpone buying a policy. This delay means your loved ones will continue to go uncovered. When it comes to life insurance with overweight, waiting too long can quickly become too late. Instead, consider buying a renewable policy where the policy is renewed annually, or look for a policy that will allow you to apply for a reassessment in the future.
Life insurance premiums after weight loss
Many of your risk factors can change over the course of life insurance. While tobacco use and health improvements are two common updates, significant weight loss can also affect your life insurance premiums.
Before purchasing a policy, discuss the potential for future reassessments or assessments if you think a life change such as weight loss might apply to you. While each insurance company has a different policy for the revaluation process, most life insurance companies will need to identify significant and healthy weight loss that will be sustained before lowering your premium.
The re-application process consists of a new medical examination and an evaluation of your medical record. Make sure your records show that not only have you lost significant weight, but you have been able to keep it off. To qualify for a re-evaluation, look at the build chart where you were first evaluated. If you’ve only lost 15 pounds, most insurance companies won’t feel like your risk factor has changed. However, once you have moved from clinically obese to a medically healthy weight, your weight-to-height ratio may change to the point where your risk rating, and therefore your premium, is lowered. Remember, losing weight due to illness may not qualify you for a better health assessment.
How to get lower rewards after weight loss
To get a lower premium on your weight loss insurance, the first step is to contact your life insurance agent and ask how to request a re-evaluation or re-evaluation. You will then need to prepare for a new medical examination and provide up-to-date medical records from your GP.
In other words, be ready to back up your claim with valid evidence to increase your chances of being re-examined. If your insurance company does not allow re-evaluation, it may be time to apply for a new policy with a different company that will give you a new medical evaluation.
frequently asked Questions
How does a build chart compare to your BMI?
Your BMI, or body mass index, is a standard unit of measure used to determine obesity. BMI is calculated by taking your body weight in kilograms and dividing it by your height in meters squared. On the other hand, a construction diagram or table is a measuring tool used by a life insurance company to determine maximum weight by height in order to determine a rating class for your health risk.
Each company uses their own specifications on their build charts to determine your risk score. However, if you have a high BMI and are considered clinically overweight or obese, it likely correlates with a higher risk rating from a life insurance company. Before applying for weight loss insurance, you can ask an insurance company to provide you with their standard blueprint.
Can you be denied life insurance if you are overweight?
Yes, life insurance can deny you coverage if you are overweight. However, since each life insurance company has its own weight limit rules, it is possible to find another insurance company to insure you even though another company has denied coverage. While this varies, typically a company will only deny coverage if you are considered pathologically obese. In some cases, a company may only offer a certain type of policy or coverage limit instead, and you can expect higher premiums than an insured person who is not overweight.