8 things that will deny you life insurance coverage

 

Are you considering life insurance, but worried that you won’t qualify? Understanding the policies and potential factors that can affect your coverage is essential. Here are 8 things that could deny you life insurance coverage.

1. Smoking and Tobacco Use: Many life insurance companies will deny coverage to those who use tobacco, including cigarettes, cigars, chewing tobacco, and e-cigarettes. Even if your policy doesn’t list nicotine as a disqualifying factor, you may end up paying higher premiums if you use any type of tobacco product.

2. High-risk Occupations: Life insurance companies may not provide coverage for individuals who work in professions deemed high-risk. Examples of high-risk occupations may include logging, mining, sky diving, or other hazardous jobs that put your life in danger.

3. Pre-existing Health Conditions: If you have a pre-existing health condition, such as diabetes or high blood pressure, it can prevent you from getting life insurance coverage. Insurers are more likely to deny coverage for those with serious health issues that can shorten life expectancy or increase the risk of death.

4. Extreme Sports: Just like hazardous occupations, insurers may not be willing to provide life insurance coverage for those who participate in extreme sports or activities like base jumping, mountain climbing, etc., due to the high risk of injury or death.

5. High-Risk Behaviors: If you engage in activities such as dangerous driving, drinking and driving, using drugs, etc., you may be denied life insurance coverage. Insurers are wary of customers who engage in high-risk behaviors due to the increased risk of death or injury.

6. Age: Some companies will not provide coverage for individuals who are too young (under 18) or too old (over 80). It’s important to double check the criteria for age eligibility when shopping around for life insurance coverage.

7. Multiple Policies: If you already have multiple life insurance policies from the same insurer, they may deny additional coverage due to the increased risk of payout. Insurers want to limit their risk exposure and will deny applications if it appears that a customer is trying to get more than their fair share of benefits.

8. Low Credit Score: Even if none of the above criteria applies to you, insurers may deny coverage due to a low credit score. Not only is a good credit score important for taking out loans and getting approved for credit cards; it also plays an important role in qualifying for life insurance policies as well.

No matter your situation, it’s important to understand the requirements and criteria for obtaining life insurance before you apply for a policy. It’s also wise to shop around for different insurers and compare rates and requirements to find the best coverage for your needs and budget.