As you get older and start a family you should consider purchasing life insurance to ensure your financial security. Your beneficiaries are protected by life insurance. It provides a death benefit which can cover everything from funeral expenses to outstanding debt to daily living expenses and future tuition costs.
Your weight can have a significant impact on your risk factor which can be the difference between a lower or higher insurance premium. This is a quick overview of how weight loss can affect your life insurance.
How does weight and health impact life insurance premiums
The premium for your life insurance can be determined based on your age, gender, profession, and most importantly, your health. Insurance companies view individuals with certain medical conditions as more risky than those who are healthy. The insurance company wants to be able to charge you enough so that they don’t lose any money by paying out a death benefit. This is especially true if they offer a term policy, where they are betting you will live beyond the term. A young, healthy person has lower risk factors and a lower rate of mortality.
Life insurance companies use built charts to calculate your weight and height. This information is then compared with mortality rates for your build type to determine what your risk rating is. Your weight will be compared against the mortality rates for your build type to determine your risk rating. You will pay more premiums if you are considered a higher-risk applicant.
Obese individuals are at an increased risk for serious health complications including hypertension, type 2 diabetes, stroke, heart disease, cancer and mental illness. Anemia, osteoporosis, and decreased immune function are all consequences of being underweight. These conditions can reduce your life expectancy, and they will be considered risk factors by life insurance underwriters.
Weight loss and money saving
No matter what your body type, life insurance can be a great investment in your future. If you are in the market for life insurance coverage but you are currently overweight or obese, you might think that it is a good idea to lose some weight before you apply for coverage. Your risk rating may not be affected by the fact that you have lost weight. Other factors such as your age and conditions related to obesity could still impact your premium.
Although a healthy weight can result in a lower premium than a heavier one, it is possible that you will delay purchasing a policy if you don’t lose weight immediately. If you delay, your loved ones may continue to be without coverage. It is easy to wait too long for overweight life insurance. Consider purchasing a renewable term policy, which renews each year, or looking for a policy that will allow you to re-rate in the future.
Premiums for life insurance after weight loss
Many of your risk factors can change over the life of a policy. Your life insurance premiums may be affected by significant weight loss, as well as changes in your health.
If you are concerned about future ratings or re-evaluations, it is worth discussing the possibility of purchasing a policy. While every insurance company will have a different policy on the re-evaluation process, most life insurance companies will need to see significant and healthy weight loss that is being maintained before they will lower your premium.
Reapplications will require a new medical examination and an evaluation of your medical records. Your records must show that you have lost weight and have maintained it. Consider the build chart that you used to be first assessed in order to qualify for a rerated rating. Most insurance companies won’t consider your risk factor to have changed if you have lost only 15 pounds. If you are clinically obese and have gained weight to be considered medically healthy, this may affect your risk rating, which could lead to a lower premium. You may not be eligible for a higher health rating if you lose weight due to illness.
How to lower your premiums after losing weight
Your life insurance agent can help you apply for a revaluation or re-rating to get a lower premium on weight loss insurance. The next step is to prepare for a new medical examination and to provide your most recent medical records.
To put it another way, you should be ready to support your claim with evidence in order to increase your chances of getting reconsidered. If your insurance company will not let you apply for a re-rating, it may be time to apply for a new policy at a different company where you will get a fresh medical rating.
Questions frequently asked
What does a build diagram look like compared to your BMI
Your BMI, or body mass index, is a standard unit of measurement to determine obesity. Your BMI is calculated by taking the body mass in kilograms, and then dividing it by the height in meters squared. A build chart or build table is another measurement tool that life insurance companies use to determine your maximum weight and height in order to assign a rating for your health risk.
Your risk rating is determined by each company’s build charts. If you have a high BMI or are clinically obese or overweight, your risk rating will likely be higher through life insurance companies. You can request an insurance company’s standard build chart before you apply for weight loss coverage.
Are you overweight and can you be denied insurance?
If you are overweight, your life insurance company might deny you coverage. You can find another insurance company to insure you even if another company denies coverage. While the rules may vary, most companies will deny coverage to you if your weight is considered too high. You may be offered a limited type of coverage or policy limit by a company, but you will pay more premiums than someone who isn’t overweight.
