Many people find the idea of acquiring life insurance to be a grim, unattractive, an even scary proposition. Therefore, they may push the topic out of their mind completely to avoid having to think about planning for their loved ones in the event of their absence. However, life is unpredictable, and accidents, injuries and death can occur without warning.
The tolls of a death of a loved one are not just emotional. Financial troubles that are incurred can be devastating, particularly if a two-paycheck household becomes a single income family. This is why life insurance policies are in place: to provide financial stability to the bereaved.
While life insurance is necessary for many, there are instances where individuals can be denied a life insurance policy. Here a few factors that may prevent you from securing life insurance benefits.
You Have a Pre-existing Health Condition
It’s a sad-but-true irony that the healthiest individuals are deemed eligible to purchase life insurance, but it makes sense that insurance companies are more willing to insure those who present less of a risk. There are many health conditions that may raise your premiums, such as high cholesterol or blood pressure, asthma and diabetes, to name a few. However, more severe conditions such as recent heart attacks or cancer or an elevated liver condition can lead to a denial of coverage
You Have a Bad Driving Record
If you have excessive speeding tickets, have been involved in numerous accidents, or have been charged with driving under the influence (DUI) more than three times in the past 10 years, you will not be eligible for life insurance. For many insurance companies, this behavior exhibits a lack of concern and denotes recklessness – both which make you a high risk to an insurance company.
You Participate in High-Risk Activities
If you participate in sports that are considered dangerous, you may be denied life insurance. These activities include: skydiving, scuba-diving and other high-adrenaline sports. Sometimes, insurance companies offer exclusions for these activities.
You Have a Criminal History
While not everyone who has been committed a crime will be denied, there is a possibility that a criminal past will affect your eligibility for life insurance. Many factors will influence a denial of coverage, such as how severe the charge was, how long ago the event was, and whether there is evidence of rehabilitation. Generally, more than two misdemeanors, or one felony will disqualify an individual from receiving life insurance.
You Have a History of Financial Troubles
Many life insurance companies will not cover anyone who has filed for Chapter 7 bankruptcy, unless the proceedings have been finalized for over 12 months. Individuals who have filed for Chapter 11, 12, or 13 bankruptcy may be able to qualify for coverage if regular debt payments are being made.
Find Out If You Qualify for Life Insurance
Life insurance is a valuable tool for insuring that your loved ones remain financially secure after you’re gone. When deciding on a plan, remember to shop around—insurance companies differ greatly. If, for any reason, there’s a denial of coverage, it’s always wise to get a second opinion. To get your life insurance quote today, click on the “Start Your Instant Quote” button at the top of the page.