The Top 5 Reasons People Are Turned Down For Life Insurance (1)
You may be looking into getting an insurance policy and trying to find out if you can qualify. In this article, you will learn about the top 5 reasons that people get turned down for insurance as well as some tips on how to avoid them.
Health Reasons
The most common reason people get turned down for insurance is that they don't qualify because of their current or previous health history. For example, most insurance companies want to wait one or two years from the time someone has been cancer free, or from the time of a heart attack. Other times multiple health issues together may cause you to get declined for insurance. For example, while diabetes alone may not be a cause for a decline for life insurance, you may be declined if you have diabetes, depression,ADHD,and are over weight. If you think you are at risk for being declined due to your health, make sure to work with an agent that understand high risk insurance.
Financial Reasons
Most people don't know that there is a limit to the amount of insurance you can buy. One of the ways insurance companies decide how much insurance you can qualify for is based on your annual income. If you don't have an income, you must have a financial justification to have insurance in place. If you can't come up with one, the life insurance company will decline you for insurance. One item to note is that if your spouse or significant other has insurance, you can usually qualify for the same amount, even if you don't have an income to qualify.
Bankruptcy
If you are currently going through a bankruptcy most life insurance companies will decline your insurance application. Chapter 7 is usually considered worse than a chapter 11,12, or 13. This means that you may have to wait a year from a chapter 7 bankruptcy, while you may be able to qualify for insurance if you already have a payment plan and in the midst of a chapter 11,12 or 13 bankruptcy.
DUI
If you have received a DUI in the last 10 years you might be declined for life insurance, depending on which company you apply and how old you are. If you have had multiple DUIs - 3 or more over the last 10 years, you probably won't find any life insurance companies that will approve you. The key to getting approved is knowing the guidelines of the insurance companies and finding out who is most likely to approve you.
Criminal History
If you have a criminal record, especially a record that includes one or more felonies, you may be declined for insurance. Depending on the crime, the conviction, and how long ago your parole ended, you may or may not get approved for life insurance. Being upfront and honest about your past will be your best bet to getting approved.
If you are looking into life insurance here are a couple of things you should do. First, be completely honest about your situation, whether it's health or any other issue. The more information your agent and the insurance company have, the better. Second, make sure you work with an agent that has the experience to help you navigate the various guidelines of insurance companies, so that you have the best chance of getting approved for life insurance.