It’s been quite a while since I’ve updated Life insurance underwriting guidelines and prices for those who have had a gastric bypass surgery. I shopped the question over the last week so have up to date looks from a large number of life insurance companies and their views on recent surgeries versus past surgeries. Hopefully this will be helpful.
When I queried the life insurance underwriters I decided to go with a relatively recent gastric bypass surgical question because for most this will be 1. The first time they have qualified for life insurance due to their old weight and 2. The beginning of a process toward lower rates in the years following your first life insurance approval. My question to the underwriters went like this, “Male PI 50 years old, 5’11, 235, non smoker. One year ago weighed 315 and had gastric bypass with no complications. Current weight was achieved in 9 months and has been stable since. Was treated for blood pressure and has been able to discontinue treatment. Assume he won’t get full credit for weight loss in one year. If that is the case and weight remains level could he be reconsidered for a better rate after a year in force.” I wanted to find out what my fictional client could get now and assuming weight loss is maintained, when they could be reconsidered for a lower rate.
Responses, as they always do with anything impaired risk in life insurance, ran the gamut. Assuming $500,000 of 20 year term life insurance I had three companies at that quoted standard rates, one at $181 a month that would reconsider to a better rate in two years, the other at $173 a month but they would not reconsider to a lower rate unless the insured lost more weight through diet and exercise.One company trumped all others by a wide margin coming in at $145 a month. They would also keep at a standard rate unless there was more weight loss from diet and exercise and then any reconsideration would be after the first anniversary of the policy. Another company quoted a table 2 (25% per table) but they would add that to their standard plus rate so the monthly would be $183 a month, so still very competitive. Things went down hill (or up hill) fast from their with the $500,000 of life insurance with monthly premiums running from $243 to $309 a month for the same coverage that could be obtained at $145.
Bottom line. There is life after gastric bypass and the medical world has finally turned the corner and allowed as how the surgery may be the wise option in many cases. Better rates can come with a longer period of stability or more weight loss through diet and exercise, but it isn’t out of the ballpark as soon as 3 months after weight is stabilized. If you have questions or believe you are paying too much or have been mistreated on your post gastric bypass life insurance, call or email me directly. My name is Ed Hinerman. Let’s talk.