Life insurance is a great benefit for your family, but the insurance company may deny your application. Many life insurance companies have strict guidelines on who they cover. Even if you think you're healthy and a good candidate, you could still be denied. However, that doesn't mean you will never get a policy. Here are some common reasons why some companies deny applicants.
Your Exam Revealed an Existing Health Problem
Many life insurance companies require an applicant to take a physical exam. Usually, the exam consists of a blood and urine test. You may feel healthy, but your exam might reveal a possible risk. Alternatively, your cholesterol level may be too high, or your insurer considers you overweight. These conditions are often considered high risk.
You Have a Risky Health History
Some insurance companies may deny you if you have a history of serious health issues. Many companies scrutinize numerous preexisting conditions even when they are well-controlled. Some insurers may accept you, but with exclusions and higher rates.
You Are Too Old
Most insurance companies have an age range for certain coverage types. Your risk of health problems increases as you get older. If you are an older adult, you may still have options. Several companies and organizations offer senior life insurance.
You Engage in Risky Behavior
Risky behavior isn't limited to things like dangerous hobbies like skydiving and race car driving. Smoking and heavy drinking are also risky. If the insurance company does not deny you straight off, you are more likely to pay a higher rate than someone who doesn't do these activities.
You Have a Dangerous Job
If the insurance company considers your job high risk, then you could be denied. The types of jobs considered high-risk are not always obvious. Aside from jobs like police officers and roofers, insurance companies may also deny farmworkers and garbage collectors. However, your workplace may offer you a special policy in these cases.
You Have a Bad Driving Record
You may think your driving record has nothing to do with life insurance. However, a bad driving record may indicate a tendency to engage in risky behaviors. Speeding, reckless driving, and DUIs all affect your life insurance application.
The good news is you can still get life insurance. One way is to appeal your application. You can also look for a different policy or set of products. Not all policies deny people for the same reasons. Some are willing to take on more risks than others. If an insurance company denies your application, talk to a life insurance provider to see what options you have. Contact a life insurance company for more information.
You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.