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Obesity & BMI Life Insurance, Critical Illness Cover and Income Protection

The facts about getting Life insurance with Obesity

Obesity and high BMI has been heavily linked to increased mortality rates, as well as increased risk of heart disease, gastro-intestinal issues and Diabetes. This can make life insurance for people with high BMI both difficult to obtain and highly important for applicants who wish to protect themselves and their loved ones. The level of cover varies wildly between insurance companies and your options will depend on whether your body mass index (BMI) falls in acceptable range of your providers guidelines. We understand that applying for Obesity & high BMI Life Insurance, Critical Illness Cover or Income Protection can often be disheartening but there are many options available.

What does Obesity & BMI Life Insurance cost?

If you apply for life cover with a high BMI, you can expect to receive standard terms for most insurance policies so long as your body mass index does not exceed 40. However, providers may offer cover at an increased premium below this threshold and anyone with a BMI over 36 may be quoted higher monthly premiums. Insurers are more likely to provide favourable cover to older individuals as high BMI at a young age can often lead to chronic health issues and serious medical conditions. If you are overweight or obese you can expect your insurer to ask you questions about your medical history such as:

  • What is your current weight and height?
  • Are you experiencing any weight related health conditions? (e.g. high cholesterol, high blood pressure. Type 2 Diabetes etc.)
  • What is your general health like?

Your premiums for Obesity & BMI Life Insurance will also depend on:

  • Sum assured (£’s)
  • Term of cover (years)
  • Type of policy (e.g. Family, Mortgage, Whole of Life etc.)

Obesity & BMI Life Insurance rates/ratings

As Obesity and high BMI can often lead to serious illness, most applications for Obesity & BMI Life Insurance will be considered non-standard and have higher rates. Non-standard life cover simply means that underwriters have identified additional risks and your premium will be raised to offset this. Insurance companies will use a risk-based scale to determine the extra cost of life cover and may apply ‘percentage’ or ‘per mille’ loading to your premium. Guidelines vary between insurance providers and you are likely to receive differing rates.

Percentage (%) loading for Obesity & BMI life insurance

If insurance companies choose to apply ‘percentage loading’ to your policy, underwriters will look to your personal details to decide if they are able to underwrite you. If your risk is considered above the maximum level of loading your life cover will be declined. Maximum levels of loading are unique to each provider and many insurance companies are accessible to higher risk clients (e.g. 300% or 400%).

EXAMPLE:

Basic premium
% loading
Final premium
£20.00 50% £30.00
£20.00 100% £40.00
£20.00 150% £50.00
£20.00 200% £60.00
£20.00 250% £70.00

Per mille loadings for Obesity & BMI life insurance

As ‘per mille loading’ is only applied in cases involving serious health conditions, the chances of ‘per mille loading’ being applied to your policy are quite low. ‘Per mille loading’ applies a set amount to your monthly premium based upon the amount of cover you have applied for. This means an amount like £1 or £2 could be added to your premium per thousand £’s of cover. ‘Per mille loading’ can be added to a policy either permanently or temporarily.

As obesity and high BMI leads to higher mortality rates and increased risk for many health conditions, insurers may want to add ‘exclusions’ to your policy. This means that any medical conditions you may develop that are related to your high BMI will be excluded from life cover. If you are considering obtaining any insurance policies with an exclusion you should be fully aware of what may or may not be covered should you need to register a claim.

Cover required is dependent on your individual circumstances and will vary from person to person. To ascertain what amount works best for you, you should look closely at your finances before applying for an Obesity & high BMI Life Insurance. If you are finding this in anyway difficult our specialist team may be able to help advise you. However, there are some simple rules you can follow to ensure you are making an informed decision.

It is important you are aware that your Obesity & high BMI Life Insurance, Critical Illness Cover or Income Protection policy could increase after underwriting. Underwriters do this if they believe there is an added risk of claim and this may affect the affordability of your policy.

When considering the amount of Obesity & high BMI Life Insurance cover you will require, it’s best to ensure you are accounting for:

  • The amount left to pay on your mortgage.
  • Any outstanding debt (e.g. Loans, second charge, credit cards and other)
  • Dependants
  • Spouse or Partner
  • Annual Income (after Tax)
  • Any financial assets (e.g. car, house, business etc.)

If you feel unsure or require more information to decide how much life cover you will require to secure your family and home, see our iam insured life insurance calculator.

Critical Illness policies are often available to people with a body mass index (BMI) of 45 or below. The higher your BMI is, the lower your chance of acceptance becomes. This is due to the increased risk of critical illness that comes with obesity. Many insurance companies will begin to increase monthly premiums if an applicants BMI is higher than 30 and applicants with a BMI over 45 are unlikely to be accepted. If you are overweight or obese and suffering from related health conditions, you will find it much more difficult to obtain a critical illness policy. Critical illness policies are a great way to ensure you are protected in the event of a serious medical condition. Critical Illness cover provides policy holders with a tax-free lump sum in the event they become unable to work. This lump sum can be used to help recoup loss of earning, pay off debts or to provide treatment. If you are considering applying for Critical Illness Cover it’s very important that you ensure the amount will cover all of your expenses. Some things you should consider when deciding on an amount are:

  • Your annual Income (after Tax)
  • Mortgage/rental payments (annual)
  • Cost of living (annual)
  • Any other potential costs (e.g. medical treatment or adaptations)

Income Protection policies will follow similar guidelines as Critical Illness Cover. If you have a high BMI and have developed related health issues finding Income Protection cover may be difficult. If you have not developed any major health conditions, there still may be a chance you can obtain Income Protection cover. An Income Protection policy can help you to recoup loss of earnings if you become unfit for work. These policies will provide monthly payments that can help you to maintain your standard of living and keep on top of rent or mortgage payments. Policy holders can claim multiple times across the policy term and policies can pay up to 70% of your annual pre-tax income should the need arise. This type of life cover can be especially beneficial for people who are self employed or otherwise unable to obtain sick pay. If you believe an Income Protection policy is the best choice for you, ensure you’re accounting for:

  • Monthly income (after tax)
  • Mortgage/rent payments
  • Debts (other)
  • Cost of living

Which insurance companies offer Obesity & BMI Life Insurance?

Acceptable high BMI thresholds differ wildly meaning your eligibility for life cover will change dramatically between insurance companies. There are many insurers who are willing to cover overweight or obese applicants, but you should be aware that you may have to pay a higher monthly premium or agree to an exclusion.

If you have been having trouble applying for life cover due to your high BMI, it may be worth speaking with a specialist insurer like Iam Insured. Here at Iam Insured, we take all your individual circumstances into account so we can provide you with best deal at a low monthly cost.

Obesity & BMI Critical Illness Cover and Income Protection providers

With obesity rates currently skyrocketing insurance companies are dealing with increased cases of Obesity and high BMI. Although it may be difficult, it is likely you will be to obtain life cover. Insurance companies will often change or revise existing policies meaning it is well worth reapplying if you have been declined before. If you are still unsure of your options or would like to discuss what sort of life cover Iam Insured can provide, please consider contacting a member of our expert team. Iam Insured are authorised and regulated by the Financial Conduct Authority and registered in England and Wales.  Our advisors can help find life cover that works best for you. Contact us now on [TELE]

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