Insurance companies have many reasons for denying someone
life insurance coverage. However, perhaps the largest reason that life insurance is rejected
is due to a health condition. Below, Insurance Specialists, Inc. offers
some explanations behind the reasons people are so often denied coverage.
Keep reading our life insurance blog below!
Top Reasons Life Insurance Is Denied
1. You have an ongoing medical condition.
An ongoing medical condition that affects the heart or makes one more susceptible
to a heart attack might raise a red flag for an insurance company. A serious
illness such as cancer, diabetes, or a terminal illness, you may get turned
down for more traditional forms of life insurance. Instead, you may be
offered high-risk life insurance, and not every company offers this and
the rates can be higher. You can discuss your situation with Insurance
Specialists, Inc. to determine which route is best to take.
2. Your income is disproportionate to the policy you’ve requested.
The typical formula for life insurance is to seek coverage that is somewhere
between 10 to 30 times your yearly salary, and also depending on your
age. It may be difficult also to be approved if you are not pulling in any come.
3. You have a history of drunk driving.
Have you been arrested for driving under the influence more than once?
The bottom line—insurance companies will almost always deny life
insurance coverage if you have been convicted of three drunk driving charges
within the last 10 years. In fact, some companies may even choose to deny
coverage after one or two convictions. In their eyes, a person with multiple
DUI’s is seen as a risky client. To clear your name and your record
with the insurance companies, you should participate in counseling or
alcohol education or demonstrate that you have been free of alcohol abuse
for the past two years; the goal is to ensure that your life insurance policy.
4. You have a criminal record.
Not all criminal convictions automatically mean that the insurance company
will deny coverage. The type of crime involved and the amount of time
that has passed since conviction all play a role. So, for example, being
convicted once 15 years ago for a misdemeanor is not nearly the same as
being convicted of several felonies. You might wish to consult with an
insurance agent who has an understanding of high-risk life insurance policies
to assist you. Our team at Insurance Specialists, Inc. would be more than
happy to direct you on the right path.
We understand the importance and peace of mind that an insurance plan provides.
That is why we are here to provide high-quality, client-centered service.
We have more than 50 years of experience.
Contact us today!