Reasons Life Insurance Companies Don’t Want You to Lose Weight
Learn why life insurance companies don’t want you to lose weight before applying for a plan. Here are the reasons.
Life insurance companies have their own analysts/agents to know the right rating they could give to an individual. The rating may depend on the overall health of the person.
In a recent conversation I had with my friend, who happens to be a lawyer, I’ve learned that losing weight can greatly affect your premium.
For instance, if you’re overweight, your rate might be low causing you to endure higher premium. But if you drop some pounds before applying for a life insurance, you might get bigger savings.
Hence, (most) life insurance companies don’t want you to shed some pounds so you’ll pay more for your premium.
PROS OF HAVING AN IDEAL WEIGHT WHEN APPLYING FOR A LIFE INSURANCE
As previously mentioned, you can save money when you lose weight before the weigh in. Despite being in great shape and you don’t smoke, your premium will still be higher, if your weight is too high for your height, i.e. you’re overweight.
But by dropping at least 7 pounds before the exam, you can get at least 20% less of your premium.
Losing 7 pounds within two weeks is actually doable. You just have to cut down your calories and start a workout routine of cardio and strengthening.
After you’ve lost weight, the life insurance company will ask for a blood and a urine results. Because you’ve stayed away from eating fatty foods, the results are better allowing you to get a better offer.
DOES IT WORK ALL THE TIME?
According to my lawyer friend, it doesn’t always work that way.
For example, if you’ve seen a doctor in the past and you were overweight, the result would reflect on your medical records. What if the life insurance company will request your medical history?
The insurance agent will obtain the average of two weights. And you may not get the rating class you’re trying to get hold of.
Even if you lose more than 7 pounds before the weigh in, you’d still get an average weight and you’d still fall under the limit of the rating class you’ve been applying for.
SHOULD YOU PAY FOR A HIGHER PREMIUM?
Even if you don’t get a better price because of your past medical record, you should pay a higher premium and reapply a year later. If your weight is consistent, you might get a better rate after 12 months.
You must not put off purchasing a life insurance because you can’t trust yourself to drop some pounds. Remember that each time you have your birthday, your life insurance premium increases, whether you lose weight or not.
Although most of us here in the Philippines are having second thoughts about getting a life insurance, we can’t take away the fact that having such can surely help us in the future.
We’ll never know what we’ll happen to us in the next 5, 10, 20 years.
There are several life insurance companies in the Philippines that can help you get a better rating. So, don’t wait to lose weight before you apply.
Send your application right away and schedule your medical examination within 3 weeks. If you don’t hit your ideal weight before the weigh in, you can always reschedule it.
By the way, when you apply for a life insurance in the Philippines, don’t go with pre-need companies. According to a BPI Philam Life Insurance agent I’ve talked to, these pre-need life insurance companies are prone to bankruptcy (remember what happened to CAP and LEGACY?).