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Can Losing Weight Lower Your Life Insurance Rates?

March 25, 2016

Staying Healthy to Save Money on Life Insurance

Your health will inevitably play a role in how much you pay for life insurance. From the insurance company’s perspective, an unhealthy applicant equals more risk. The risk of the applicant dying prematurely increases as his health decreases. This is, of course, why smokers are forced to pay higher premiums, sometimes four times the amount of nonsmokers. The same is true for overweight applicants. Those seeking to purchase a policy must meet a particular set of standards in order to get the most affordable rate, a classification usually known as Preferred Plus. Insurance companies rate an applicant’s weight based on their height. Thus, the inevitable question becomes can losing weight help you save money on life insurance. The answer might surprise you.

 

Rapid Weight Loss Will Not Help You Save Money on Life Insurance

Insurance companies only reward applicants if they’ve been able to maintain a healthy weight for at least 12 months. This means that a dramatic drop in weight or fasting for a month will not help you in the long run. Excessive weight loss over a short period of time is not seen as a sign of good health in the eyes of the insurance company. Every insurance provider has its own way of dealing with weight loss. If an applicant has lost 50 pounds in the last 12 months, either by diet or surgery, the insurance company might compare the applicant’s weight a year ago with their new weight and split the difference. Therefore, the applicant would only get credit for losing 25 pounds.

If you’re considering losing weight to save money on life insurance, your best option might be to wait unit you’ve maintained your new weight for at least 12 months. Otherwise, you’ll have to bite the bullet and face slightly higher premiums. However, many insurance companies allow applicants to retake the medical exam during their first year or two of coverage. If you’re serious about losing weight, retaking the medical exam in a year from now can help you lower your monthly premiums. And, of course, there are many other benefits to losing weight outside of life insurance premiums.

 

A Healthy Lifestyle Is the Best Way to Save Money on Life Insurance

Regardless of how much you weigh, leading a healthy lifestyle is always the best way to save money on life insurance. You can lower your monthly premiums by quitting smoking, getting more exercise and eating a balanced diet. While it might take a while for you to reap the full benefit of these healthy habits, they will help you in the long run.  In the meantime, you can speak with your physician about ways to improve your health as you get closer to purchasing life insurance.

 

 

Comparing rates is another way to make sure that you save on life insurance. At Intramark Insurance, we work with top-rated insurers to provide you with the very best coverage and rates. Get started with a life insurance quote today.