There is nothing to worry about if you ever get denied life insurance by any insurer.
There might be a lot of reasons for the denial but the good news is there are solutions as well.
In this article, we will discuss the most common reasons to be denied life insurance and how to overcome the issues.
7 Common Reasons To Be Denied Life Insurance
It is the privilege of life insurance companies to choose who they’ll cover and refuse coverage.
But, if there is a way to approve you, they will definitely do it as no one wants to lose customers.
Now, let’s see what are the common denial reasons and their solutions.
Issues Concerning Health
Your application for life insurance will be denied if you have any serious sickness: AIDs or HIV; cancer; diabetes, elevated cholesterol; heart disease, high-level cholesterol, etc.
Solution: Try to get proper treatment and control the medical condition. If that is not possible, go for a guaranteed acceptance life insurance.
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.
Solution: You can always get low-income life insurance, read this.
Some occupations are risky and dangerous.
Life insurance companies are reluctant in approving policies for people working in these 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
- Fishermen and Related Fishing Workers
- Logging Workers
- Roofers, And
- Workers in Structural Iron and Steel Industry.
Solution: Most of the employer provides mandatory group life insurance who are working in these risky occupations.
However, if that’s not sufficient, you can find insurers who are offering policies to these risky jobholders.
Alcoholics and Drug Users
Life insurance companies are wary of alcoholics and drug users. You must pass the drug test to get approval for life insurance.
However, marijuana use is slowly gaining acceptance as it is now legalized in some states. Strong drug users are automatically declined.
Solution: Stay away from drugs. 🙂
Certain Types of Convictions
Not all criminal records are unacceptable.
Insurance companies consider conviction type, time duration since the conviction, and length of time since probation.
Any multiple felony charges are denied although a single one may be acceptable.
Solution: You have to wait few more days to apply again, find more here.
Your driving records show your way of a risky lifestyle.
A string of multiple accidents or tickets for roadside violations or DUI/DWI incidents is an important issue for insurance companies.
Solution: Pay for the previous tickets and drive carefully next time. Apply again after few months.
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.
Solution: Submit again and 100% correct information.
Getting your application denied is not the end of the line.
Most people will be able to find a policy that will help them. Don’t give up after the denial of your application.
The first denial does not mean that it will happen to the next one.