Recently, I started looking into life insurance for myself. As a larger person, I wanted to see what the best options were……..and if there were even good ones for larger people.
I found some pretty surprising information on just how different insurance providers can be. Some options are definitely better than others. And some are WAY better.
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Table of Contents
What you need to know about life insurance (for overweight people)
Overweight versus obese insurance – What you need to know
The 3 Best Life Insurance providers for overweight or obese people.
Conclusion
What You Need to know about life insurance (for overweight people)
In this section we’ll talk about some not so obvious things, and some slightly obvious things you need to know about getting life insurance as a larger person. When I was looking into getting some for myself – I found some pretty interesting info out.
Smaller people get SIGNIFICANTLY better rates. Not just a small amount difference, you can literally pay 10x (not exaggerating) the rate that a younger, thin person pays if you’re larger. Since most companies are going off data and weighing risks it does make sense……..But the difference in price is quite shocking. I didn’t think it would be that much of a difference.
Some companies are unfair, and are borderline ripoffs. I wasn’t to shocked to find this out, because there will always be bad apples. But it was surprising to me that some companies will charge triple what others will and give literally half the coverage.
You should consider choosing bigger And more trusted companies. Smaller companies can go under and it’s possible to lose everything. While I did notice some smaller companies offering great rates, and working closer with people than larger companies…….they do come with risk. If they go under it is significantly harder for you to receive what you’re owed.
You might have to buy whole life and not term which can be extremely expensive. – If you are to large you can be denied, but most of the time it looks like they’ll give you the option to do whole life. Which costs much more than term. It’ll be a lot more than if someone else that’s healthier did a life policy however.
There are options for no medical exam life insurance which can sometimes be beneficial. Basically, if you think you’ll be to large that you’ll have to be denied or have to pay a huge premium monthly……you can choose the option to not have a medical exam. Not all life insurance companies offer this, but some do and this can be a way to get your insurance for less.
There are independent insurance agents and they are extremely helpful. Basically these guys don’t care who you go with. They just want you to get a good deal. They’re going to get paid either way. If you find one that’s been around for awhile they can make the process very fast and easy.
The rates are changing more often than you’d think. Insurance companies are changing their rates pretty frequently based on data. You can get one rate one year, and the next nothing changes and it’s a totally different rate.
You want to purchase a term with the option to go life – This is called a convertible insurance policy. Just in case your health becomes worse, and the company denies you future coverage – buying a term life insurance policy where it’s convertible into a life policy can be just an extra guarantee. Something to consider if you think your health might not be as good in the future.
They might deny you insurance. Even if you’re healthy. This even happens even to bodybuilders. Seriously. Some companies will deny you if your BMI is to high. Flat out. No exceptions. I thought before looking into this that practically anyone could get life insurance, but the restrictions are surprisingly strict.
Even if you lose weight, some companies will factor you based on the highest weight you’ve ever been. Seriously. I personally think this is absolutely ridiculous, and that they’re just trying to make more money. Just another reason to make you shop around and check all of your options. I also wasn’t able to find a good reason why some companies do this.
Check to see what is available through your employer. Many companies offer very cheap term life insurance rates. Rates are negotiated as a group in companies so you can get a better rate. Pretty cool opportunity for those of us that have to pay a huge premium because of our weight/other issues.
Bundle with home and auto. You’ll get a huge discount. This is very significant leverage, and the discounts are pretty huge. This is the best way I could find to get a discount except maybe using an independent agent. You’ll also get better coverage.
Many times your online quote will be much lower than your real quote. Not only this, but your online quote will usually be inaccurate. It’s a very very rough estimate of what they will offer.
Some companies will allow you to reassess your health assessment after a couple years – some won’t. I personally think this is ridiculous, but I understand it is their right. It would seem to me that you should be allowed to reassess your weight and your premiums at least yearly.
Companies go back to up to ten years of medical history. It seems like most go back to 5. Just so you know so you’re aware that your rate might not go down even if you lose weight.
Make sure you talk to your agent about wether or not you should do a premed exam. They’ll be able to tell you wether or not you’ll get a better deal with doing the exam, versus going without.
Your Life policy is going to be expensive for you since you’re larger, but if you’re young you shouldn’t count them out entirely. Life policies can be beneficial for a variety of reasons, some you can cash out on the policy or even miss a few payments and still keep the policy.
Some companies are just absolutely horrible. Just be careful, and do your research. There are some awful companies out there who just overcharge and underdeliver.
Some smaller companies will offer better rates. Just be careful. It does look like some smaller companies offer better deals. I’m personally worried they won’t pay out in the future, or could have some other problems because they’re smaller. So I’m going to avoid them.
Overweight versus obese insurance – What you need to know
When you start getting quotes and researching for your life insurance provider and plan, you’ll need to consider the difference between being overweight and Obese.
Overweight people will get slightly higher premiums, but people who are obese will get substantially higher premiums. They can literally be 5 times what an overweight person pays. Sometimes, you can even be denied, and not be that overweight. You will be surprised what the insurance companies consider overweight and obese. It is much lower than I expected.
If you decide that an offer is to high, losing weight can make a significant impact on how much you pay. Unfortunately, you’ll still pay higher than other people because you were overweight at one point.
Note: I did say this in the section before, but I’d like to just repeat myself for those that missed it: If you are overweight or obese, sometimes it is better to not do an exam. Opt to not do an exam, and you can end up with a better offer. This is usually only a better option if you are much larger than most people.
The 3 Best Life insurance providers for overweight or obese people
These were the providers who seem like they gave the best overall deal in my opinion. They have good “riders” (additional benefits added to life insurance policies) and have great ratings and overall coverage for a good price.
These are not the best for every situation, but they look like a good choice for most larger people.
Note: It is possible these companies might have changed their policies since this post was written.
#1 Prudential
This is definitely my first pick. This company is very affordable, and has great benefits and policy options for the price. They are slightly higher priced than others however. They are extremely secure because they’ve been around awhile, so you can know what to expect with them. Fun fact: Prudential has been around 140 years.
#2 American General
Another one that’s been around awhile (100 years), American General is one of the largest insurers in the world, and does look to be extremely trustworthy. So when I get my policy I’ll probably end up going through them if Prudential doesn’t work out. They have great policy options and are also a great value.
#3 Banner Life
This company is VERY surprisingly inexpensive. Very, very, cheap. They have good policy options as well, and they have been around awhile. Definitely worth checking out, especially if you’re looking for something inexpensive.
Conclusion:
I hope you found this post helpful! This is just my research I found when looking up different life insurance options. If you have any advice please leave a comment!
THANK YOU SO SO MUCH FOR READING.