Extra Weight Costs Life Insurance
It is well-known that if you have medical
conditions or poor health, it will be difficult
and expensive to acquire
life insurance. Insure.com’s article,
“Being overweight carries life insurance
pains,” explains that even if you
seem completely healthy but are overweight,
you will most likely pay more for health
insurance.
“According to a study published in
the Journal of the American Medical Association,
excess weight is linked to 280,000 deaths
in the U.S. annually.”
The main thing life
insurance companies focus on upon determining
if you are overweight, is your build. Your
build is described as your weight relative
to your height.
The average weight for a five-foot, five-inch
woman is between 117 and 156 pounds, depending
on the size of the frame. A six-foot, two-inch
man should weigh between 153 and 197 pounds.
Build conversion charts can be easily obtained
through the Internet or your doctor’s
office.
If you're just a little overweight, by about
10 to 15 pounds, you should not be too concerned,
but if you are severely overweight, you
may be denied coverage or at least charged
a higher rate.
“Steve Zitney, a senior agency consultant
with State Farm, says a person can be denied
life insurance at his company if the
person is ‘grossly overweight or dramatically
obese,’ even if he does not have any
other health problems. The company will
also charge higher premiums if your weight
is significantly more than it should be
in relation to your height. If a 40-year-old,
6-foot-tall male is 270 pounds, he will
have to pay 15 to 20 percent more than a
person of ideal weight, Zitney says. If
the person weighs 300 pounds or more, Zitney
says that figure jumps to 30 to 35 percent.”
Even being slightly overweight can cost
you money because you will most likely be
denied for the “preferred rate,”
which awards healthy people a lower premium.
There are still ways to qualify
for life insurance even if you are overweight
and have health problems.
“One way some companies insure obese
people is by offering a "graded death
benefit policy" that pays out varying
amounts depending on how long you live.
In short, the longer you live, the more
money your beneficiaries receive. For example,
if you die within the first year, your beneficiary
might get the premium you paid plus 10 percent
interest. If you die within two years, your
beneficiary could get 25 percent of the
death benefit; in three years, 50 percent;
in four years, 75 percent; and in five years,
the full 100 percent.”
If you feel that the premiums are too expensive
regarding your age, health and weight, you
may want to find a lower death benefit.
This will drastically lower your monthly
premiums.
Eat right. Stay healthy. Save Money.
