Securing Life Assurance for Overweight People
Securing life assurance can be challenging for people who are overweight, but it’s not impossible. Many believe that a higher body mass index (BMI) will automatically lead to higher premiums or rejection. However, with a thoughtful approach and professional guidance, you can find affordable life assurance even if you're carrying extra weight. At Financial Planning Matters, we understand how the insurance industry works and can help you navigate the process. Here’s everything you need to know about securing life assurance as an overweight person.
Why Weight Matters to Insurers
When applying for life assurance, insurers assess the risk factors that could affect your lifespan. Your weight, often determined by your BMI, is one of these factors. A higher BMI may be associated with health conditions such as heart disease, diabetes, and hypertension, which can potentially shorten your life expectancy. As a result, life assurance providers use weight as one factor when determining your premiums or eligibility.
However, weight alone doesn’t tell the full story. Insurers will also take into account your overall health, family medical history, lifestyle choices, and whether you’ve made any efforts to improve your health. This holistic approach allows insurers to assess the true risk and provide more personalised quotes.
Understanding BMI and How It Affects Premiums
BMI is a simple formula that divides your weight in kilograms by your height in metres squared. The results are categorised as follows:
Underweight: BMI below 18.5
Normal weight: BMI between 18.5 and 24.9
Overweight: BMI between 25 and 29.9
Obese: BMI of 30 or more
While BMI is widely used, it's a general measure and doesn’t account for muscle mass, fitness levels, or body composition. Nevertheless, insurers use it as a starting point to assess risk. The higher your BMI, particularly if it's over 30, the more likely it is that your premiums will be higher. However, other factors will influence the final decision.
Factors That Affect Your Life Assurance Application
If you’re overweight or obese, several factors will play a role in determining your life assurance premium:
Age: Younger applicants typically pay lower premiums, regardless of weight. However, if you're both older and overweight, insurers may see this as a higher risk.
Pre-existing conditions: If you have health conditions related to being overweight, such as high blood pressure, Type 2 diabetes, or heart disease, your premiums may be higher. Some insurers may offer coverage with exclusions for these conditions.
Weight history: Insurers may ask about your weight history over the past few years. If you've recently lost a significant amount of weight, they might want to see a sustained weight reduction over time before offering a lower premium.
Lifestyle factors: Smokers and heavy drinkers often face higher premiums, as these habits compound health risks associated with being overweight. Conversely, leading a healthy lifestyle with regular exercise and a balanced diet can positively impact your application.
Family medical history: If your family has a history of conditions like heart disease or diabetes, insurers may factor this into their decision, regardless of your weight.
How to Improve Your Chances of Getting Affordable Life Assurance
Although being overweight can lead to higher premiums, there are ways to improve your chances of securing affordable life assurance:
Provide Full Disclosure: Always be honest about your weight, health, and lifestyle when applying for life assurance. Failure to disclose this information accurately can result in claims being denied in the future. Being transparent about any pre-existing conditions and treatments shows insurers that you are managing your health responsibly.
Work with an Independent Advisor: One of the best ways to find affordable life assurance as an overweight person is by working with an independent financial advisor. At Financial Planning Matters, we have access to multiple insurers and can compare different policies on your behalf, ensuring you get the most competitive rates available.
Take Steps to Improve Your Health: Many insurers reward applicants who demonstrate a commitment to improving their health. Losing even a small amount of weight, maintaining a regular exercise routine, and managing any medical conditions can all help lower your premiums. Even if your BMI remains high, evidence of a healthier lifestyle can positively impact how insurers view your risk profile.
Opt for a Medical Exam: While some life assurance policies don't require a medical exam, opting for one can work in your favour if you're otherwise in good health. A medical exam gives insurers a clearer picture of your overall health, which may offset concerns about your weight alone.
Consider Guaranteed Acceptance Policies: If you struggle to get traditional life assurance due to your weight or associated health conditions, guaranteed acceptance policies are an option. These policies typically don’t require a medical exam, but they often come with higher premiums and lower coverage limits. However, they can be a good fallback if other options are unavailable.
Review Your Policy Over Time: Life assurance isn’t a one-time decision. If you’ve secured a policy with higher premiums due to your weight, consider reviewing it regularly. If you lose weight or improve your health significantly, you may be eligible for better rates in the future. At Financial Planning Matters, we can help you assess your policy and potentially negotiate better terms as your circumstances change.
The Role of Underwriting in Life Assurance for Overweight People
Underwriting is the process insurers use to assess risk and determine premiums. For overweight applicants, underwriting typically involves:
A review of your BMI and overall health.
A look at any pre-existing medical conditions.
An evaluation of your lifestyle choices, including smoking and alcohol consumption.
Potentially a medical exam, depending on the policy.
The underwriting process varies between insurers, so it’s worth shopping around to find a company that’s more lenient on weight-related factors. At Financial Planning Matters, we work with a wide range of insurers and know which ones are more likely to offer competitive rates for individuals with higher BMIs.
Common Misconceptions About Life Assurance for Overweight People
There are several myths surrounding life assurance for overweight individuals, and it’s important to clear them up:
Myth: Being overweight means you can’t get life assurance.
Fact: Many overweight people successfully secure life assurance. While premiums may be higher, insurers consider multiple factors, not just your weight.
Myth: You have to lose a significant amount of weight before applying.
Fact: While losing weight can help, you can still apply for life assurance as you are. If your health improves, you may be able to renegotiate your premiums later.
Myth: Guaranteed acceptance policies are the only option.
Fact: Guaranteed acceptance policies are available, but they should be a last resort. Traditional policies often offer better coverage and premiums, even for overweight applicants.
Final Thoughts
Securing life assurance as an overweight person may come with some challenges, but it’s far from impossible. By being transparent, working with an independent advisor, and considering all your options, you can find a policy that fits your needs and budget. At Financial Planning Matters, we specialise in helping clients with varying health profiles, including those who are overweight, find the right life assurance coverage.
If you’re ready to explore your options, get in touch with us today. We’ll guide you through the process, ensuring you receive expert advice and tailored solutions to protect your family’s financial future.