Did you know that insurance companies charge higher premiums to overweight people than to slimmer folks? Some people think that it’s just a ruse by the insurance companies to make more money. However, that’s not the case at all.
Insurance companies are in business to make a profit and their financial rewards must overcome their risks. Actuaries have determined that overweight people die at a younger age than people that weigh less. If you’ve padded on the pounds over the years, you are more prone to get diabetes and heart disease. And either of these preventable diseases can snuff out your life before your time is due.
From the insurance company’s perspective, although it might seem cold to you, overweight people who own insurance policies will pay fewer premiums. That’s because they won’t be around as long as thinner people. So, based on the average life spans determined by their actuaries, these companies must make adjustments to the premiums obese people pay in order to be profitable when it comes time to pay out money to their hundreds of thousands, if not millions of beneficiaries. That is why they do charge more to people who are overweight. And they charge a lot more.
Let’s look at a specific example. Let’s say you and your buddy both have an insurance policy with the same company and, unlikely as it sounds, everything except your weight is exactly the same. You’re both five feet, eleven inches tall. Only difference is he weighs 170 pounds and you weigh in at a scale crushing 230.
Even though you and your friend are the same height, you weigh 60 pounds more than he does - over 35% more. Because of that one difference, you may be paying up to three times the amount that your buddy is for the same coverage. And every nickel of it is due to your weight.
But all is not lost. Even though you are overweight now, if you can release some of your weight it is possible to have your policy adjusted so that you will pay less for the same coverage.
Here’s a thought. Maybe cut back on the booze and baked goods for awhile. People have been known to lose quite a lot of weight just by doing that alone. And exercise would help, of course.
Once you’ve lost some weight get in touch with your insurance agent. Ask him or her what the rates would be for your new slimmer self. And if they would be even lower if you lost some more. If they say the rates will be the same it’s probably time to start looking for another insurance company.
The neat part about this is that if you “fall off the wagon” and regain any of the weight you’ve lost, the insurance company cannot raise your premiums.
And to find out more about life insurance coverage and for more free advice about life insurance, go to http://www.MikesLifeInsuranceAdvice.com
Wendy Moyer is a professional writer.