Five Reasons You May be Turned Down for Life Insurance
Denied Life Insurance Coverage?
Being denied life insurance happens. Probably more often than you think. Life insurance is a great financial planning tool so here a re the top 5 things to avoid if possible in order to get your best rate on life insurance and avoid being denied.
Reason One: Diabetes
Diabetes is becoming more and more a problem in our society. Elevated blood glucose levels are a key indicator of some one at risk for heart disease and therefor a risky policy holder. High levels usually indicate a diabetic future Not all pre diabetic applicants are turned down immediately. Some companies have a leniency for it while other life insurance companies shut you out permanently, unfortunately. Additionally, if you have diabetes that is well-controlled, then you might be able to still qualify for coverage. However, un-controlled diabetes is a much bigger issue.
Reason Two: Obesity
Lide diabetic insurance shoppers obesity is a disqualifier but not immediately. In some cases, many in fact, the insurance companies will not disqualify you permanently or even immediately. You are more likely to be assessed a higher rate or a lower coverage amount due to the higher risk but still be able to be covered. A few more dollars per month is still better than no coverage at all when the time comes. Most providers refer to a build chart, which is a requirement chart based upon your height-to-weight ratio. Your best option here would to be covered as soon as possible and fot the benefit of your own health lose weight as soon as possible and then go back and ask the insurance company to rereview your condition and ask for an increase in coverage for the same amount you are paying or ask for the lower rate you had hoped for in the beginning. Your chances are high since you are already covered that this might happen.
Reason Three: Age
While life insurance becomes more important as you age, it can become harder to obtain if you’re older. Age begets health issues, and the risk of poor health may turn some providers away. In some cases, however, a provider may offer coverage to older shoppers. Still, the available policies might also be lower, as well.
Reason Four: A Dangerous Occupation
Much like a pre-existing health risk, the possibility of poor health in the future may result in coverage denial. If you work a risky job, you might fall into this at-risk category—making it harder to find life insurance coverage.
Reason Five: Previous Denials
If you’ve previously had a life insurance policy denial, your risk of future denial increases. Life insurance providers answer to the Medical Information Bureau—which reports to future companies about your insurance application history. Future providers may receive notification of this.
Fortunately, it’s still possible to find a good life insurance plan. Speak with your provider about potential risks when shopping, and be proactive about finding a provider which may cater to your situation. In time, you’ll find a policy that’s right for you.