High Risk Life Insurance for the Obese

The percentage of obese people in the United States is staggering: exceeding 30 percent in most demographics except for 20 to 39 year old men. Because overweight brings with it the increased odds of long-term illnesses, as well as early death, covering obese people is considered a high risk venture by most insurance carriers. Many life insurance providers won't cover obese people, but a few have created new insurance products that can get people with weight problems covered.

What's Weight Got to Do With It?

• Obesity carries with it risk for numerous illnesses, including heart disease, high cholesterol, hypertension, osteoarthritis, sleep apnea, some cancers, stroke and diabetes---all of which can impact how long a person lives. Covering a person who is severely overweight then becomes a significant risk for life insurance policy providers. Most insurers base their acceptance of coverage and premiums based on medical research that determines the average life span based on many factors, including their weight and overall health.

How Much Weight is Too Much?

• Many life insurance policy providers measure a person's build to determine how much to charge that person for insurance. That is, they are looking at how much that person weighs relative to his or her height. This calculation is quickly captured in the Body Mass Index, or BMI formula. A BMI of 25 to 29 is considered overweight and a BMI of 30 or higher is considered obese. Although each has its own underwriting criteria, the best rates are given to given to those who are at an ideal weight and have a BMI below 25. Still, being five to 10 pounds overweight is not much cause for concern when it comes to life insurance, but the higher the BMI, the further up the risk ladder a person goes on life insurance underwriting tables.

High-Risk Life Insurance

• High risk life insurance policies are written for individuals who represent an adverse risk to an insurance company, including those who are considered obese. They work like other forms of life insurance in that whe the insured person dies, a policy benefit equal to the face amount of the policy is paid to his or her beneficiaries. But often the amount charged for such insurance is exorbitant and the sometimes the benefit paid out can be limited.

Life Insurance Products for Obese People

• There are a handful of companies that specialize in high-risk, or impaired risk insurance, specifically for people who are obese. Some high-risk insurance for obese people works so that if an obese person dies within a certain amount of time and the death is caused by the overweight, the benefit paid out may only be equal to the premiums paid in. Others offer a graded benefit policy that will pay out an amount depending on how long the covered individual lived. The longer he or she lived, the more money paid out.

Tips for Shopping for Life Insurance

• Calculate your BMI before shopping for insurance so you have an idea of where you fall. If you have no other health conditions and no urgent need for insurance, consider dropping your weight to your ideal BMI before signing up for insurance.

  If you are obese, know that you have options, and a good number of companies specialize in this kind of policy. If the premiums are too high, you can shop the other companies. You may also consider lowering the death benefit amount to get the premiums down to something more reasonable.

  Work with an agent, but stay informed. There are high-risk insurance agents who know the companies that will underwrite a person who is obese, but some are bound by contractual obligations to insurance companies that don't offer this type of policy.

  In the end, weight is a serious consideration for life insurance providers, and comes with a risk that you will pay for.