Life insurance for weight loss

Why does weight loss affect life insurance premiums?

Life insurance premiums are determined based on a variety of factors, which may include your age, gender, profession and — most importantly — health. Life insurance companies consider individuals with certain health conditions to be at a higher risk of passing away than individuals who are healthy. From the insurance company’s standpoint, they want to charge you enough that they do not lose money from paying out a death benefit, especially in the case of a term policy where they are betting that you will outlive the term. Therefore, a young and healthy individual who has fewer risk factors and a lower mortality rate will pay less for a policy.

Life insurance companies use build charts to determine the ratio between your height and weight which are then compared against mortality rates within your build type to determine your risk rating. If your weight is under or over the preferred ratio, you will likely be considered a riskier applicant, pay higher premiums and, in some cases, be denied coverage altogether.

Obese individuals are at an increased risk for serious health complications, including hypertension, type 2 diabetes, stroke, heart disease, cancer and more. Being underweight also comes with its own health risks like anemia, osteoporosis and decreased immune function. These health conditions can lower your life expectancy and will appear as risk factors to life insurance underwriters.

Should I lose weight before getting life insurance?

If you need life insurance to adequately protect your loved ones, finding the right policy as soon as possible may be your best choice, regardless of your plans to lose weight. There are two main types of life insurance options to purchase. A term insurance policy, that only lasts a few years, might make sense if you plan to begin a comprehensive weight loss program in the future. Once the weight is off, you could then purchase more robust permanent life insurance or a second, or replacement, term policy with potentially lower premium rates.

Keep in mind that while there is no single type of coverage that is the best life insurance for weight loss, term insurance, as the name suggests, offers coverage for a limited term of time. Waiting until you lose weight before you apply for coverage may leave your loved ones in financial distress if you were to die in the interim.

A weight reduction plan might take several years before leaving you at a comfortable weight. A term policy could serve as a stopgap measure until your weight loss regimen is complete, and you can then either purchase a new policy or ask your current insurer for a rate class reconsideration.

Life insurance premiums after weight loss

Over the course of a life insurance policy, many of your risk factors may change. While tobacco use and health improvements are two common updates, significant weight loss may also impact your life insurance premiums.

Before purchasing a policy, discuss the potential for future re-evaluations or ratings if you think a life change like weight loss may apply to you. While every insurance company will have a different policy on the re-evaluation process, most life insurance companies will need to see significant and healthy weight loss that is being maintained before they will lower your premium.

It is also likely that a crash diet undertaken without medical support will not help lower your rate. Most insurers want to see a lower weight maintained over the course of at least a year before considering a premium reduction. Some carriers may split the difference between your current and past weights to determine your rate.

After weight loss, insurance reapplication will consist of a new medical exam and an evaluation of your medical records. Be sure that your records show that you have not only lost significant weight but have been able to keep it off.

To qualify for a re-rating, consider the build chart in which you were first evaluated. If you have just lost a few pounds, many insurance companies will not feel that your risk factor has changed. However, if you have gone from clinically obese to a medically healthy weight, your weight-to-height ratio may change enough to lower your risk rating and, in turn, lower your premium.

When asking for re-evaluation, note that you will need to back up your weight loss claims with solid evidence. If your company will not let you apply for re-evaluation, you may want to start over and apply for a new policy with a different company.

Do prescription weight-loss drugs impact life insurance options?

The new generation of Semaglutide weight-loss drugs, which includes the popular medications Ozempic and Wegovy, has brought weight loss to millions of individuals. If you are using one of these drugs and apply for life insurance, your potential carrier is likely to find out since a prescription history check is a common practice during the underwriting process.

As we noted earlier, insurers are interested in seeing sustained, long-term weight loss. The challenge of drug-assisted weight loss is that a person often needs to remain on these drugs throughout their life to maintain their weight, and expense may be a factor for many individuals. Carriers know this, so may, in some cases, be reluctant to drop rates for those who are dependent on these medications for weight loss.

The best insurance for weight loss

Losing weight is a significant challenge, but the benefits are many. Having affordable life insurance for weight loss is only one of the perks of working toward better health. There's no single company that is always the best option for life insurance since each individual's needs differ, and each insurer has its own underwriting policies and procedures.

It's generally a good idea to compare quotes from several insurers to find the best rates for your needs. Cost isn't the only factor, though. You may also want to review customer satisfaction ratings from J.D. Power, and financial strength rankings from AM Best and S&P. These independent organizations can help you find the best insurer based on the factors that are important to you.

Remember, too, that you have options regarding the type of insurance you purchase. A limited term insurance policy may make sense if you anticipate losing weight in the future or if you just want simple, inexpensive coverage that only lasts for a period of years. Or you may choose a type of permanent insurance if you want life-long coverage with additional cash benefits. If your need for coverage is both short- and long-term, you may want to consider laddering coverage with both primary types of life insurance.

Frequently asked questions