Planning to choose a life insurance policy for yourself? You may be surprised to know that life insurance companies may not follow the ‘welcome all’ policy they may so advertise.
Every life insurance company has several clauses for declining life insurance cover. Ever wondered what they are? Here are the 6 most common ones that you may not know:
Known to be the root cause of major illnesses and conditions, overweight is certainly a red flag for life insurance companies. While being overweight alone may not be a sufficient ground for declining insurance (though the premium may be higher!), its existence with other health risks increases the likeliness of a decline.
Some life insurance companies don’t write a life insurance policy for someone whose income is below a certain level. That level varies between insurance companies.
Elevated Cholesterol, Lipids and Triglycerides
The main concern here isn’t necessarily high cholesterol, but rather the combination of high LDL cholesterol, and low HDL cholesterol. The combination puts you at higher risk for heart disease and stroke.
Even though AIDS and HIV are better understood now than in the past, and even though survival rates have improved dramatically, some life insurance companies still see them as red flags and may deny your application. However, there are companies out there that will provide life insurance subject to certain tests.
Some occupations carry a higher degree of danger than others. This can make life insurance companies reluctant to approve policies if you are working in an occupation that is considered particularly hazardous.
Previous Declines on Life Insurance Applications
Life insurance companies subscribe to a system that enables them to share information on approvals and denials with other insurance companies. A previous denial is usually a red flag. But this doesn’t mean that just because you’ve been denied a life insurance policy in the past, that you can never be approved by any other life insurance company.
There are several more reasons why you may be denied insurance. But the point of this list isn’t to discourage you from applying for life insurance. Rather, it is to educate and make you aware so that you can go about it in the right way.
If you have been denied Life Insurance:
- Find out the specific reasons for the denial. You’ll need this information in order to determine your next course of action.
- Get copies of your medical records. Order copies of any medical records that were used by the life insurance company in declining your application.
- Work with an independent insurance broker. There are hundreds of life insurance companies, and each takes a somewhat different view of various health conditions. A broker may be able to suggest a company that best suits your health and habits.
Hope this helps to make you an informed choice.