It can be easy to ignore and we all want to put it in the back of our minds, but it’s important to consider your plan for after you leave. You may think that you are too young to think about life insurance, but the harsh reality is that no one knows what the future holds. Hence, it is important to plan ahead to make sure your loved ones are supported when you are not around. Life insurance is a policy that ensures that those close to you receive financial help after your death. This can take the form of maintenance of housing bills, mortgage payment assistance or assistance with childcare costs.
However, it is important to understand that there are certain factors that can cause you to be denied life insurance. For this reason, it is important to inform yourself and prepare well in advance to avoid unexpected fluctuations in speed when applying for a policy. There are several online resources that you can consult to learn more about life insurance and why you should apply, including for example theinsurancebulletin.com. But to get you started on your trip, here are five reasons why you might not be eligible for life insurance.
1. State of health and diseases
When applying for life insurance, you will need to provide a variety of information and personal data that will be assessed. It’s a bit of a credit check, and if certain factors in your application deem you ineligible, the provider will reject you. The most important thing is that all of the information you submit is correct.
Of course, if you are fit, healthy and have no pre-existing medical conditions, this section of your application is easy. However, certain policies require you to undergo a health examination if you have applied for high coverage or if you have any illness or condition that is cause for concern. Some pre-existing conditions include diabetes, epilepsy, heart disease, and kidney disease, to name a few.
2. A high risk profession
Of course, not all of us were suitable for an office job, and some jobs are more dangerous than others. Unfortunately, with some of these career choices, you may be denied life insurance because you are at greater risk of a fatal accident. Some jobs that fall into this high risk category are:
- Airline pilots
- construction worker
- Truck driver
- Logging worker
- Fishermen and allied fishing professions
3. High risk hobbies
If you are an adrenaline junkie then you are likely constantly on the lookout for the next activity that will satisfy your thrill-hunger. However, this can also run the risk of being denied life insurance. In fact, any activity that could result in death or an accident will reduce your chances of getting a policy.
Some examples of dangerous hobbies are climbing, mountaineering, and base jumping. However, the insurer also takes into account how often you participate in these activities. If you don’t do this on a regular basis, chances are that you won’t be hindered in applying for life insurance.
4. Unsuccessful applications so far
Not all factors considered by a provider relate to your current life choices as the insurer has the opportunity to look back at your previous insurance history. This means that if you were previously denied coverage by an insurance company, you could be classified as a high risk life insurance candidate. Of course, if there was a valid reason why you were denied insurance in the past and your circumstances have changed, you can appeal the decision and have it revoked.
Having a reliable source of income increases your chances of obtaining life insurance significantly. If you have a relatively low income, you may be denied life insurance and the amount of income required will vary from provider to provider. Taking out life insurance requires a financial commitment. If your income indicates that you may have difficulty raising the cost of the insurance, your application may be considered unsuccessful.