Like most types of insurance, life insurance is all about risk. If a company believes you may be likely to die at a young age, it may not extend a policy to you. This is a factor that impacts many people of all ages. Eligibility for life insurance tends to vary from one company to the next. It may be worth getting a second quote. Here’s what you need to know about the process.
Why Was Your Life Insurance Application Denied?
When you submit an application, it goes to a company called an underwriter. These professionals gather information and then make a decision about whether a person is too much of a risk to offer a policy. It makes sense. If anyone could receive coverage, everyone would take a policy out on a person who is very ill or dying. To avoid these risks, you may have to answer key questions about your health and lifestyle.
Many factors can contribute to a denial of an application. A lot of the time, it comes down to pre-existing conditions. These are health conditions or ailments you have at the time of your application. Some types of medical conditions can indicate a potentially shorter lifespan. Companies must decide, then, whether these health issues can impact the time of when your policy exists. If so, it may be too high of a risk for the company to manage.
Other Options May Exist
Some companies offer life insurance to those who have pre-existing conditions. Take a closer look at these policies. Many will have a shorter term than other policies typically have. Additionally, they may charge you more for the coverage. Keep in mind that this may still be very affordable to you. You may also be able to choose a guaranteed-issue policy, or you may want to consider a death benefit that is lower.
If you can enroll in a group plan, such as from your employer, you may have an easier time qualifying if you have a pre-existing condition. Be sure to find these options from your employer but also from any professional associations you may be with.
Having a denied application for life insurance can seem frustrating. It is worth requesting a quote from a few different providers. Doing so can help you to find a company willing to help you. Always be honest on your policy applications. Most of the time, a medical exam is necessary and will reveal the details of your health at that time.