Life insurance rates are developed using a number of different factors. A primary factor is your personal health. This includes information on family health history as well as your current state of health.
Conditions commonly linked with obesity include diabetes, heart disease and high blood pressure. These conditions will greatly decrease your "insurability" and increase your premium. (Insurability describes the results of rating factors used to determine the type of coverage offered and premium charged for a particular person.)
While it is true that Americans on average are "big people", being big doesn't necessarily mean you're unhealthy or obese. Unfortunately, most life insurance companies use rating tables that include average height and weight for men and women. If your weight surpasses a certain level, your premium likely will increase.
Body Build
Life insurance companies pay close attention to your "body build"-the relationship between your height and weight. The higher your weight in relation to your height, the more life insurance companies believe your health is at risk. And this belief is not without merit. An American Medical Association study reveals that excess weight is linked to 280,000 American deaths each year.
People whose weight is consistently within a few pounds of the desired weight may not experience a significant increase in life insurance premium. However, a significant weight gain will result in higher life insurance premiums.
These increases vary by company. Examples of thresholds that are used by life insurance companies include 150 percent of desired weight or a number, such as 20 pounds, over an ideal weight. Eclipsing a life insurance company's threshold may not disqualify you from coverage completely, however, even a modest weight gain can mean the difference between a normal and preferred rate.
Coverage for Obese Americans
Most companies will provide life insurance to obese people. However, the premium cost is staggering. Premiums can be exceptionally higher, causing many individuals to drastically reduce benefits or forgo coverage altogether. It is not uncommon for an obese person to pay as much as 40 percent more or higher for the same coverage that a person of average height and weight is paying.
Additional Information
For more information on the health effects of obesity, statistics and height-weight tables, visit the American Medical Association's Web site.
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