There is no doubt that, at some point in your life, you will be looking into life insurance options. While there is much to consider when thinking about purchasing a life insurance policy, it is also worthwhile to consider for what you will be eligible. Unfortunately, life insurance providers have the ability to decline you coverage for a number of reasons, many related to health or income. This is why it is beneficial to start considering life insurance when you are young, in order to cut bad habits out of your life as you get older.
For example, one of the reasons a company can deny you insurance is alcoholism. Alcoholism is a condition that incurs lasting health damage. If your liver is only slightly deteriorated at the time of your application, insurance companies understand that the deterioration will get worse. They therefore will see you as a liability and can refuse you coverage. In this scenario, a person must dedicate him or herself to becoming sober. After a period of sobriety that shows the sobriety will continue, he or she may be granted life insurance.
Another reason to deny a potential customer is obesity. The weight itself is not so much concerning to companies; it is the health complications that accompany being overweight that make insurance companies nervous. Being overweight can lead to cardiovascular problems and, while it may not result in a complete rejection, an overweight person will definitely have to pay higher premiums on their insurance policy. If you are thinking about insurance, taking your health into account, and making changes if necessary, is recommended.
Of course, not all life insurance rejections stem from factors that can be altered.
A reason to get rejected that is not related to health has to do with income. Some insurance companies do not award life insurance to anyone who has an income below a certain bracket. Unfortunately, the companies use this method to contain costs. The companies must also be able to match the insurance policy with a person’s assets, and the policy a person wants may not always coincide with his or her income.
Furthermore, life insurance applications can be denied based on the applicant’s profession. Life insurers will be less likely to approve applications for people who work in dangerous industries, such as in the airline or roofing industries. Power line installers and truck drivers are not safe either.
Overall, there are several reasons life insurance companies can deny an applicant insurance. The best advice, if you are thinking about applying for a life insurance policy, is to make whatever lifestyle changes that you can to make you more eligible.