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Getting life insurance is not something you have to shop for. It is often offered to you by some friends or recommended by someone you know.  At the end of the day, you will realize its value that you will seek for it as part of your financial security.

Its Importance Can’t Be Denied

An abrupt solution for financial needs

You need financial assistance in times for funeral costs, settle hospital bills, pay realty estate taxes, as well as unpaid debts.

Security for children’s education

The ultimate goal for parents is to provide the best education for their children. With insurance, this goal is attainable.

Replace loss of household income

If the family breadwinner dies, there will be sufficient funds to take over.

7 Common Reasons for Denial of Life Insurance Coverage

It is the privilege of life insurance companies to choose who they’ll cover and refuse coverage.

Issues concerning health

Your application for coverage will be denied if you have any serious sickness: AIDs or HIV; cancer; diabetes, elevated cholesterol; heart disease, high-level cholesterol, etc.

Limitations of income

An applicant whose income does not reach a certain level will be denied. That level varies depending on insurance companies. If your income is low, it is a hindrance to approval as the insurance needs to justify your policy.

Risky occupations

Some occupations carry are risky and dangerous. Life insurance companies are reluctant in approving policies for people working in these 10 deadliest jobs: airline pilots & flight engineers; construction laborers; drivers/sales workers & truck drivers; installers & repairers of electrical power-line; farm & ranch workers; managers in agricultural outlets; fishers and related fishing workers; logging workers; roofers and workers in structural iron and steel.

Alcoholics and drug users

denial of life insurance coverage

Life insurance companies are wary of alcoholics and drug users.

However, marijuana use is slowly gaining acceptance as it is now legalized in some states.  Strong drug users are automatically declined.

Certain types of convictions

Not all criminal records are unacceptable. Insurance companies consider conviction type, time duration since conviction and length of time since probation. Any multiple felony charges are denied although a single one may be acceptable.

Driving history

Your driving records show your way risky lifestyle. A string of multiple accidents or tickets for roadside violations or DUI/DWI incidents is an important issue for insurance companies.

Previous declines of application

Modern technology allows companies to share relevant records for the application. Your information stored in the Medical Bureau is not that confidential. The purpose of this type of service is to warn insurance companies of applications containing wrong information.

What to do if your life insurance application is declined?

Getting your application denied is not the end of the line. Most people will be able to find a term life insurance policy that will help them. Don’t give up after the denial of your insurance application. The first denial does not mean that it will happen to the next one.

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