Does being overweight matter when it comes to insurance?
We are all feeling the effects of winter…most people pet on an extra kg or 2 during the winter months. But it you are serverely overweight it does effect your insurance prices.
Being overweight is one of the most common reasons people applying for life insurance are declined or charged higher rates. If you are obese, or even just overweight, your height/weight ratio will be a factor used by life insurance companies and their underwriters to increase the premiums for your life insurance policy.
Even though many people who are overweight remain healthy into old age, insurance underwriters primarily use mathematical statistics to determine health ratings and premium rates. Statistics show that being overweight increases an individual’s death rate by roughly linear terms. So, for example, if you are 25% overweight insurance life expectancy charts say that you will have a 25% greater chance of dying at any given age than a similar, but non-overweight, individual. This increased health risk is often due to heart problems, high blood pressure, digestive ailments, and/or diabetes.
The more overweight you are, the worse you can expect your health ratings to be. Worse ratings translate into higher prices. If you are overweight you should also expect an extended application review process as the insurance company may decide to order extra medical records from your doctor.
An important note: If you have lost weight, please let me know. It might mean you will get a reduction on health insurance.