5 Reasons Why You May Be Denied Life Insurance Coverage
Applying for life insurance requires that you have all of your paperwork, including your medical records, in order. However, despite proper documentation, your application may be declined. It all depends on the level of risk you present during the application process.
The following are five reasons why you may be denied life insurance coverage.
Participating in High-risk Activities
If you routinely participate in activities that increase your risk of injury, you will more than likely be turned down. Car racing, motorcycle racing, sky diving, or any other activity that puts your health at risk will usually prompt a denial if you include it on your application. However, if you hide this information, your insurance provider might think that you were dishonest about your risk level, and your family members may not receive the death benefits.
Poor Family Medical History
Your family medical history is a good indicator of your future health. If you have a family medical history of cancer, diabetes, and heart disease, it’s a good indicator that you may be at a much higher risk of being diagnosed with the same health problems. Living a healthy lifestyle is the best way to protect yourself from any risk that your family’s medical history may indicate. Work with your physician to make sure that you are doing everything possible to maintain your good health.
Diagnosis of a Major Illness
Being diagnosed with a major illness like cancer or diabetes within a few months of your application may result in denial of your application. If this occurs, talking to your agent may be the best way of handling the situation. A major illness means that you may not qualify for a traditional life insurance policy. By working with your agent, you may be able to find a policy that will accommodate your medical diagnosis and allow you to protect your family in the meantime.
Alcohol and Tobacco Use
Alcohol and tobacco use can lead to ‘n’ number of health concerns. While occasional use may not pose a problem when you apply for a life insurance policy, frequent or daily use might put you at a much higher risk of health problems. This is especially true if you have a family history of liver or lung disease. Constant alcohol or tobacco use can result in denial rather quickly. If you’ve been denied a life insurance policy, limiting your use of alcohol and tobacco may be what you need to be approved.
Being Dishonest on Your Application
Being dishonest on your application is the easiest way to be denied coverage. Even if the dishonesty was unintentional or due to an omission, it wouldn’t look good if your insurance agent uncovers it before you have a chance to tell them. If you are unsure how to answer a question, leave it blank and then talk to your agent about how to answer it correctly. Being as honest as possible will allow your agent to work with a carrier to get you the coverage you need.
If you are worried about being denied life insurance coverage, talk to an agent you trust. Call us at Club Agency Insurance Brokerage to get the answers you need when it comes to preventing the denial of your life insurance application. We can go over your application and give you sound advice on how to improve your odds of being accepted.