Why Term Life Insurance Is a GREAT Choice for Overweight Individuals (Updated 2019!)

Overweight, And Have Been Declined of Life Insurance? We Can Help

Are you diagnosed to be overweight and worried about not finding any life insurance policy that fits your needs?

Truth is, BMI directly affects the price of your premiums, but there are still chances for you to find a life insurance policy that fits your budget. We at Hi BMI can shop for the best policy with a premium you can afford. Remember, being excess in weight shouldn’t cost you the earth just to be insured.

According to the Centers for Disease Control, over 35% of Americans above ages 20 are classified to be obese. 69% of them are overweight. In this article, Hi BMI will walk you through the life insurance that works for overweight individuals.

Health Rating And BMI- How Does It Affect My Premium?

If you are overweight, you are typically eligible within the four health ratings named as Preferred Plus, Preferred, Standard and Standard Plus. If you have pre-existing health conditions, a terminal illness, hypertension, high cholesterol and a disease carried from the family history- your health rating might differ.

You are classified to Preferred if you are of optimal health, with only some minor issues like a slight increase in your glucose or cholesterol levels, for instance.

Standard Plus is given to individuals with good health, though there may be some isolated factors that prevent the applicant from being classified to the preferred category. This can be a history of high blood pressure or excessive weight.

For Standard ratings, the person is of average health and has the normal life expectancy. There could be minor health issues such as fluctuating blood pressure and blood glucose levels.

Sub-Standard Rates

If you are diagnosed to be obese and don’t fit into these categories, do not lose hope. You can still get insured and approved for a life insurance called ”Sub-Standard Rates”. While this might be more costly than the other health ratings, we can help you find the policy that fits your ideal premium cost.

Do you have complicated health histories? Are you diagnosed with diabetes or a terminal heart disease? Substandard life insurance caters to high-risk cases. This includes people with DUIs, hazardous occupation, alcoholism and smoking habits.

In case you receive a substandard rating because you have a high-risk occupation or you have extreme hobbies, insurers may reconsider after you have withdrawn from participating in the dangerous activities you are exposed to. But, in cases that the applicant has a chronic health issue, it would be a little harder for the rating to be removed.

In rare cases that the insurer reduces a rating and later finds out that the risk reduction was from a misrepresentation, the carrier may contest your death claim and charge additional premiums before your beneficiaries are paid out your death benefit.

High-Risk Life Insurance For Overweight Individuals

What if you exceeded the measurement of weight that’s allowed to the health rating you are classified to?

This is why it’s great to work with an independent agent that would look at high-risk insurance options for you at only a fraction of the cost. Otherwise, you’ll have to buy a policy that can only cover for you for accidental death.

Even if you are classified to be overweight and high-risk, we can help you find the best life insurance companies that can possibly offer you life insurance coverage with a premium that’s agreeable to you. After all, not all companies use the same chart to measure your height and weight.

With Hi BMI’s access to dozens of top-rated life insurance carriers, we can shop for the right policy that best serves you and your family’s interest.

Is Term Life Insurance Better Than Permanent Life Insurance?

Term Life Insurance fits the bill for most people nowadays. Considering that term life insurance comes more affordable than permanent life insurance, purchasing a term life insurance becomes a top choice for most individuals. If you happen to be overweight and planning to shed weight, it is best to get insured under a term life insurance policy. After getting insured, you can work your way in losing weight.You can lock in a permanent policy if you have been classified into a lower weight class.

Here’s why term life insurance for overweight individuals is a better, more economical option than most of the policies.

To replace income

Are you the family breadwinner? Do you have income-dependent family members?  The first probable reason why you are wanting to get insured is your desire to find an income replacement for your family. How much money would your family require to continue to live as comfortable as they do while you are still alive?

Term life insurance is the best way to cover your potential income loss for your dependents. This covers your human capital, or simple, your ability to earn. If you are around your 20’s to 40 ’s, you have a more income potential loss. This is because you have even more working years. The friction does not affect retired folks or those that are nearing retirement. To give you an overview, the best timeframe to replace your income is 7-12 years of your current earning.

Each person will have a different need here. Life insurance carriers will also have various caps and what they will be ready to offer based on your age bracket and your earning capacity. This only means one thing, the younger you are applying for insurance, the higher the factor is allowed.

To Pay Off Any Major Debt Obligations

When you die, you want your loved ones to remember you with the best image you can ingrain in their memories. This can be the ability to keep your family home, getting your children their first car, or sending them to a good college.

The second most common reason why individuals need to be covered with a life insurance policy is to pay off the debts that you owe. There are some types of debts that you can “get away with” by the time you pass away, and these debts are called as non-transferable debts. However, most debts will be handled by your estate or will be left to be handled by a secondary entity just like your spouse.

A mortgage is the best example of the debts that can be transferred to a second entity.  If you are paying a mortgage, how much more money do you still need to completely pay the remainder of your house loan? How much more money do you need to leave enough to fend off even just a portion of your mortgage? You might be thinking to yourself that it will all be just fine, until you consider hefty prices from insurance, taxes, inflation and a costly cost of living.

Does this debt need 30 more years to be paid off entirely? Matching the term duration to the length of time you need to pay off debt can save you thousands of dollars. Once you purchase a home that is about 20 years to pay in your mortgage contract, it’s best to get a 20-year term so you can save up from expensive premiums.

To Make Business Acquisition Easy

Both term and universal life insurance are ideal to make business acquisition process a little more smooth-flowing.

A buy or sell agreement is the process where business partners plan ahead of what to do with the company or group of companies if one or more of the stakeholders pass away before the property is handed down to another entity. A buy or sell agreement is also done to help them determine how to dissolve the business properly.

This way, the buy and sell agreement prevents the surviving partner to take charge of the business that is owned by their spouse, partner or heirs. This secures the business to thrive within the market even if the original stakeholders are no longer around to oversee how it goes.

Choosing the policy type in this situation is mostly depending on the type of business, the business model and how your company is recognized and laid out by the federal law.

Once purchasing a life insurance, it is best to work with us, Hi BMI and team up with a legal professional to get the matters sorted out lawfully. We can talk about how you can settle your payments in accordance to the law.

Covering Up your SBA Loans

If you are running a small business underfunded or funded by borrowed money, term life insurance works well in settling your loan.

In case you are borrowing money in the form of an SBA loan, being insured for a term life policy will save you loads of time and effort to get approved of a loan. Most lending companies will likely demand and choose loan applicants who have a life insurance in place. The death benefit will be earmarked to the lending firm to wait for approval.

Term life insurance can effectively cover up your loan’s end date. Matching the duration of your term life insurance policy to the length of when the loan will be completely paid will decrease your premiums. Lending institutions vary in the amount of time they give people the loans they needed. Sometimes, it depends on their business industry or the type of loan you applied for.

It is also highly advisable to keep your business insurance separate from your personal life insurance. In most cases, people are able to save up much more after buying a life insurance of their own at a certain death benefit amounting for price breaks. These individuals prefer to the list the amount higher than the principal loan versus the amount to the family.

If your approval is taking too long because of your health class (which will likely to happen with any life insurance carrier), you should consider a no exam life insurance policy Sometimes, life insurance approval takes quite long and your loan date might not intersect the date. Getting a no-exam policy will be lightning-fast.

Going Through With Divorce

Depending on the state, some spouses should have an entitled personal life insurance for the benefit of the other spouse after the divorce case has been settled.

There are reasons behind this requirement, but the number one would be to be able to support the children and a payment for the alimony. If the spouse who should give child support passes away, the counterpart would be left without the death benefits.

Life insurance for overweight individuals helps in this not-so-inviting situation. Life insurance coverage can provide quick cash to replace the future cash flows that are intended to be received if the spouse lives on and continued paying the child support.

One size does not fit all in life insurance. Every family is different. However, most families meet their needs with a mix of term and permanent life insurance. That’s why it is crucial to work with an independent life insurance advisor, they will help you find the right blend of life insurance if you are overweight.

High-Risk Life Insurance For Overweight Individuals

What if you exceeded the measurement of weight that’s allowed to the health rating you are classified to?

This is why it’s great to work with an independent agent that would look at high-risk insurance options for you at only a fraction of the cost. Otherwise, you’ll have to buy a policy that can only cover for you for accidental death.

Even if you are classified to be overweight and high-risk, we can help you find the best life insurance companies that can possibly offer you life insurance coverage with a premium that’s agreeable to you. After all, not all companies use the same chart to measure your height and weight.

With Hi BMI’s access to dozens of top-rated life insurance carriers, we can shop for the right policy that best serves you and your family’s interest.

I am Overweight. How Do I Get An Affordable Coverage?

Remember, classifying to one health class isn’t entirely about BMI. The life insurance carrier you are applying to will review your interview and medical examination results to calculate premiums. Making a few changes on your lifestyle, diet and exercise can definitely help to reduce the costs of your premium.

Eliminate your smoking habits to eliminate the chances of raising your blood pressure. If you are a smoker, expect that you are to pay higher rates when you are purchasing your life insurance plans.  Truth be told, smokers pay twice the amount for life insurance with the same coverage a non-smoker gets.

This is because smoking increases blood pressure that can later lead to more serious complications such as lung cancer, COPD, and emphysema. You are also a candidate for developing numerous heart diseases- such as atherosclerosis (plaque build up on the arteries), heart attack, and stroke.

Make it a habit to eat healthily. Avoid sugary, oily and fatty diets. You might want to avoid foods that can increase your blood glucose and blood pressure levels. Consuming vegetables, specifically micro-vegetables and keeping away from liquor about two to three weeks before your medical examination is a good start. Also, minimize your caffeine consumption as this can increase your heart rate and your blood pressure levels.

Avoid massively reducing your weight. Once your life insurance carrier finds out that you’ve flushed around 10 pounds of weight or more within the past 12 months, they might add back half of the weight you have shed.

For example, you weigh around 150 lbs about 12 months ago your medical exam. Came the date of your medical exam and you are measured to in 140 lbs. Some life insurance carriers will add back 5 lbs and classify you to the health class where your previous weight belongs to. Losing a few pounds about two to three weeks before your scheduled date of medical examination is a good rule of thumb. Be sure to track your calorie intake to avoid the increase in your cholesterol levels as well as your blood pressure.

Don’t worry about the pricey premiums. If in case you’ve lost weight in the future, you are always entitled to the ability to reapply again for better rates.

Be honest in your medical examination interview. Lying would not take you anywhere in a cheaper health class. Be sure to tell your interviewer the truths about your weight and your medical history. If you have been diagnosed with a certain pre-existing illness, be sure that the interviewer knows about it too. It would be a good choice to bring your doctor’s prescription and past medical records ( those that you had for the past 12 months).

Some applicants lie on their interview just to end up having different results from their medical examination. This might only incur you a bigger cost and might even lead to a decline in your application

Work with an independent agent. There are a lot of life insurance companies you can choose from, but how do you know which one is the best for you, and for your pockets?

Working with an independent agent helps you save hundreds if not, thousands on your life insurance policy. This is because independent agents like Hi BMI does not sell you a product that is specifically made by one insurance company. We don’t charge commissions or entice you with too-good-to-be-true policies. We shop for you to find the best life insurance carrier and policy that suits your need and your budget. 

Get a quote from us or call us at 386-246-2900 and we will walk you through the journey of getting insured.