It can be easy to ignore, and we all want to push it to the back of our minds, but it’s important to consider your plan for after you’ve gone. You might believe that you’re too young to need to think about life insurance, but the harsh reality is that no one knows what the future holds. So, it’s important to plan ahead, to be sure that your loved ones will be provided with support when you’re not around. Life insurance is a policy that ensures that those closest to you will receive financial aid after you die. This could be in the form of maintenance of housing bills, mortgage payment aids, or help with childcare costs.
It’s important to understand, however, that there are certain factors that could cause you to be denied a life insurance policy. This is why it’s vital to do your research and prepare early, to avoid encountering any unexpected speed-bumps when you apply for a policy. There are various online resources that you can consult to find out more about life insurance and why you should apply, including theinsurancebulletin.com for example. But to help you to get started on your journey, here are five reasons why you may not be accepted for life insurance.
1. Health conditions and illnesses
When you apply for life insurance, you’ll be required to submit a host of information and personal details that will be assessed. It’s a bit like undergoing a credit check, and if certain factors in your application deem you unfit for approval, then you will be denied by the provider. The most important thing is that all of the information that you submit is correct.
Of course, if you’re fit and healthy and have no pre-existing health conditions, then this section of your application will be simple. However certain policies will require you to undertake a health exam, if you’ve applied for a high level of cover or if you have any illnesses or conditions that cause concern. Some pre-existing health conditions include diabetes, epilepsy, heart conditions, and kidney illnesses, to name a few.
2. A high-risk occupation
Of course, not all of us were cut out for an office job and some occupations are more hazardous than others. Unfortunately, some of these career choices might see you be denied a life insurance policy since you’re at greater risk of a fatal accident. Some jobs that fall under this high-risk category include:
- Airline pilots
- Construction laborers
- Truck drivers
- Logging workers
- Fishers and related fishing occupations
3. High-risk hobbies
If you’re an adrenaline junkie then the chances are that you’re constantly on the hunt for the next activity that’s going to satiate your hunger for a thrill. However, this could also put you at risk of being denied a life insurance policy. Effectively any activity that could lead to a fatal injury or accident is going to reduce your chances of obtaining a policy.
Some examples of hazardous hobbies are rock climbing, mountaineering, and base jumping. However, the insurer will also take into account how often you partake in these activities, so if you don’t do it regularly, the chances are that you shouldn’t be hindered when applying for life insurance.
4. Previously unsuccessful applications
Not all of the factors that are taken into account by a provider are related to your present life choices since the insurer has the ability to look back into any previous insurance history that you may have. This means that if you’ve previously been denied coverage by an insurance company, then you could be classed a high-risk candidate for life insurance. Of course, if there was a valid reason why you were denied insurance in the past and your circumstances have changed, then you may be able to appeal the decision and have it revoked.
Having a reliable income source will significantly increase your chances of obtaining life insurance. If you have a relatively low income then you could be denied life insurance, and the level of income that is required will vary depending on the provider. Taking out life insurance cover will require a financial commitment and therefore, if your income suggests that you may struggle to provide the cost of the insurance, your application may be deemed unsuccessful.