4 Reasons You Will Pay Extra for Life Insurance And How To Avoid Them
If you are searching for the best life insurance rates, beware of these four reasons a company may charge you more money.
Working with an agent who sells for multiple insurance companies can often help you prevent the extra cost.
1. Being Overweight
According to the Centers for Disease Control and Prevention (NHANES Study), 74% of men and 64% of women are overweight or obese in the United States. Being overweight can lead to increased risk of diabetes, high blood pressure, and heart disease.
Most life insurance companies use your BMI (Body Mass Index) to determine what rate you qualify for. A BMI is a good indicator of your body fat.
- 18.5 to 24.9 is considered to be normal weight
- 25 to 29.9 is considered to be overweight
- 30 to 40 is considered to be obese
Company A may allow a BMI of 27 for their best rate, Company B allows a BMI of 29, and Company C allows a BMI of 31.
If you were 6 feet tall, here is what your max weight would be.
- Company A – 6’0, 199lbs
- Company B – 6’0, 214lbs
- Company C – 6’0, 228lbs
When comparing rates, you will find that every company looks at your weight differently. Some companies group men and women together, and some look at them separately.
Companies that I often recommend to clients who are overweight are Prudential, AIG, John Hancock, and Minnesota Life.
2. Your Family History
If you have a parent or sibling that has had cancer, heart disease, or diabetes, many insurance companies will not offer you their best rates. The good news is that a couple of companies we work with will not penalize you because of your family history in most situations.
We recently worked with a client who was originally considering another company who was penalizing him because his father had heart disease. He was really happy when we told him that MetLife would not penalize him because of his father’s history of heart disease. We were able to save him $185 a year.
3. You are a Smoker/Chew Tobacco
Most companies look at all smokers the same. It doesn’t matter to them if you smoke cigarettes, cigars, pipe tobacco, use e-cigs, or chew tobacco. You will have to pay a rate that is 2-4 times more than other people like you who don’t use tobacco.
Here is a real rate for a 30-year-old in good health looking for $500,000, 20-year term.
- Non-Tobacco – $40.50
- Tobacco Rate – $85.50
The good news is that there are A rated companies who will offer you non-tobacco rates if you smoke cigars, pipe tobacco, use e-cigs, or chew tobacco and have not used cigarettes in the last year.
If you are a cigarette smoker, you will have to pay the higher smoker rate. I recommend getting a quote from Transamerica if you do smoke cigarettes.
4. You have a Minor Health Condition
Most people realize that if you have cancer, heart disease, diabetes, or another major medical condition insurance companies will charge you more for life insurance. What many people don’t realize is that common condition like high blood pressure, high cholesterol, anxiety, depression, and asthma can increase your rates.
When you work with an agent, make sure to be honest about your medical history. We work with a few companies that offer great rates if you have a few minor health problems. If you pick the wrong company, you will pay more.
Also, the last thing you want to do is lie to the insurance company. They likely will find out and when they do they may decline you coverage.
Contact Brown Insurance Agency for Quotes
If you are looking for the best rates in Tucson be sure to give Brown Insurance a call at 520-888-6900. We work with over 10 great companies and our goal is to get you the lowest rate. You can get an instant quote on our website anytime here.