Being Overweight Costs You More

We all know that it is difficult to buy life insurance if you have health problems. Things like hypertension, heart disease, and diabetes are all conditions that make purchasing a life insurance package difficult. Even if you are healthy overall, being overweight can still make it difficult to buy a life insurance policy. Even those who are not clinically obese but just have a little extra weight will find that they have to pay more for their life insurance policies than others. The typical rule of thumb is that the more you weigh, the more you will pay.

It's all about "build"; insurance companies consider your build along with your medical history, lifestyle, and age when considering your application. "Build" is your weight compared with your height. Those offering life insurance have tables they use to compare the two factors to determine the level of risk you pose.

The more weight you carry in proportion to your height, the higher your risk for serious health problems. Life insurance companies are looking for customers who have a long life expectancy. Overweight people statistically are an increased insurance risk due to the fact that they often develop serious health problems as they age. The Journal of the American Medical Association published a study that indicated that 280,000 deaths in America each year are linked to excess weight.

Americans are getting bigger. The Journal of the American Medical Association (JAMA) recently published a study that said that the Centers for Disease Control and Prevention (CDC) reported obesity rates had climbed from 19.8% of adults in America to 20.9% from 2000 to 2001. This same report indicated that diagnosed cases of diabetes had increased from 7.3% to 7.9% in the same time frame. These increases did not seem to be affected by race, age, sex, or educational level.

Tommy Thompson, the U.S. Health and Human Services Secretary, says "Obesity and diabetes are among our top public health problems in the United States today. The good news is that diabetes and other chronic illnesses can be prevented with modest lifestyle changes."

The more you weigh, the more you'll pay; being just slightly overweight, such as being 10 pounds overweight, will not create much of a difference in your life insurance rates. However, being severely overweight will almost always cause you to have a much higher rate.

Steve Zitney, senior agency consultant with State Farm, states that those who are "grossly overweight or dramatically obese" can be denied life insurance with State Farm, even if they have no other health problems. If someone is significantly overweight but still qualifies for coverage, that person will pay higher premiums than someone with an ideal weight.

For example, a 40-year-old male who is 6-feet tall and weighs 270 pounds will pay 15 to 20% more than the same individual who is at an ideal weight. If the weight increases to 300 pounds, the individual will pay 30 to 35% more according to Mr. Zitney.

This is a common underwriting approach taken by large life insurance providers. David Potter, who is a spokesman for The Hartford, states that those who are 150% of their ideal weight will have to pay more for their premium. Yet again, the heavier you are, the higher your premium will be. According to Mr. Potter, "It's possible to be rejected by weight, but it's rare. Most of the people with weight problems do have other health problems, like high blood pressure and high cholesterol."

Life insurance could still cost you more even if your weight is just moderately more than it should be. You will not be offered the "preferred rate" if you are slightly overweight. This rate is lower and is only offered to people who are healthy. Someone who is 20 to 30 pounds overweight and has no other problems may be able to qualify for the normal rate, but this individual will not be offered the preferred rate.

No matter what type of life insurance plan you are applying for, whether it is a term plan or a whole life plan, your weight will be a factor. Life insurance providers base underwriting on survival mortality. This does not change, no matter what type of policy you are shopping for.

Where the "uninsurable" go; is there hope if you are rejected for life insurance because of weight? Yes, there is. Some companies and agents specialize in helping those who have serious health problems. Obese people can sometimes be insured through a "graded death benefit policy," which changes how much it pays based on how long you live. The longer you live, the more money you will give your beneficiaries when you pass away. If you die in the first year after taking out the policy, your beneficiary will be awarded the premium plus a small 10% interest payment, as an example. However, if you live for two years, the beneficiaries' interest payment increases to 25%. After three years, it increases to 50%. In four years it increases to 75%. After five years, your beneficiaries could see the entire amount if you die; these graded death benefits may only be used in extreme cases. Some companies use tables to determine the type of policy to issue. If you feel that your premiums are too expensive, your insurance company will likely recommend that you lower the death benefit in order to lower the premium amount.