11 Reasons You Get Denied For Life Insurance
Nobody likes rejections. Especially when it comes to your life insurance.
Being declined for a life insurance policy will make you worry about your family’s security in case of your death.
This is why it’s important to know the top reasons you might get denied for life insurance policies. Knowing what the reasons are will give you a better chance of getting accepted, once you make some changes and apply.
Many people are surprised to have their life insurance application declined on grounds of obesity. People are also shocked to find out what obesity is defined as. For instance, if you are 5’5” and weigh 170 or more you are considered obese. Most would say overweight, but, that’s not the case.
Extreme obesity can result in high blood sugar which leads to Diabetes, high blood pressure, high cholesterol levels, and other high-risk health conditions.
2. High Blood Pressure
Having high blood pressure or hypertension is a risk factor for different health conditions including heart disease. Since it can lead to severe complications, it is considered a red flag for many life insurance companies.
3. Chronic Illness
If you are suffering from any chronic diseases during the time of your application, the life insurance company might decline your application.
The common health conditions that can cause you to be denied for life insurance include:
- Parkinson’s Disease
- Heart Disease
4. Occupational Hazard
Being in optimal shape and with no diseases is sometimes not enough; if your job is hazardous, your application might get rejected as well.
Working in a dangerous field like truck driving, logging, construction, farming, and piloting airplanes might be a deciding factor for your application to get rejected.
If you are a casual drinker, that’s okay. But if you have a positive alcohol marker indicated when the liver functions are high, your application might get denied.
Alcoholism has a combination of damage to health and the potential for engaging in life-threatening activities.
6. Drug Use
Although many life insurance companies are slowly accepting marijuana use as it’s legal in some places, using stronger drugs will get you automatically declined when you apply for life insurance.
Like alcoholism, if you are engaged in drug use, it can lead to severe health conditions.
The older you are, the more difficult it can be to get insured. If you get approved, chances are, it can be very expensive too.
After a certain age, many insurance products will be off-limits.
8. Low Income
Many insurance companies make decisions based on the applicant’s finances, as well.
If you fall below a certain income threshold, you might get an instant rejection.
9. Driving Record
Motor vehicle accidents can lead to death. An insurance company might access your driving records to establish these risks.
If you have multiple speeding fines or if you have been charged or arrested for DUI more than once, it can result in denial.
10. Risky Habits
Even if you are in good health and with a good paying job, you can still get denied for life insurance because of your habits and hobbies.
Bungee jumping, rock climbing, car racing, and skydiving all fall under grounds for immediate denial. Snowboarding and scuba diving are lower risk activities but might cause you getting denied too.
11. Mental Health
Some insurers might decline your life insurance application due to severe mental health conditions like schizophrenia.
They might also decline you for other conditions like Alzheimer’s Disease.
Making a lifestyle change and ensuring that you are free of or treating your high-risk health conditions can result in an approved life insurance policy. Looking for an insurance company that can provide a risk assessment can also lead to an approval.