Reasons for Denial of Life Insurance Coverage

Although life insurance is easier to get today than ever, there are still people who are denied coverage. Here are ten common reasons why most people, particularly the elderly, are denied life insurance.

Senior Person Disappointed after Denial of Life InsuranceLack of Income: If you cannot afford the insurance, then you will not be allowed to own it. You will need to reduce the benefits and make other adjustments to make it more affordable.

Alcoholism: This is not a glass of wine a day, but a serious issue that is affecting your health. Alcoholics, especially older people are vulnerable to significant health risks that include death which makes for an automatic rejection.

Drugs: If you abuse drugs, it carries the same danger signs for insurance companies as being an alcoholic. Even marijuana which is gaining acceptance in modern culture is still a big red flag for insurance companies that are not comfortable covering someone who engages in recreational drug use.

Unusual Liver Function: If your liver is working overtime, that is an indication of something being wrong. A severe liver issue concerns life insurance companies because it may indicate a serious medical condition. However, warning signs are generally few, so you may want to get a medical exam first.

Blood in the Urine: Blood or excessive protein levels in the urine may be a symptom of excessive physical exercise. However, it also may be an indication of kidney disease which is more likely if you have not exercised excessively. Insurance companies will want that cleared up before approving your application.

High Cholesterol Levels: Having high levels of LDL cholesterol puts you in grave danger of coronary artery disease, heart attack, or a stroke. You will need to lower the LDL and boost your level of HDL cholesterol to more normal levels.

Obesity: Being overweight, especially if you have reached your senior years, is a big red flag to insurance companies who may quickly deny your application. If you are more than 100 lbs. overweight, that is considered being morbidly obese and may result in an automatic denial.

Lifestyle: If you live life on the edge, chances are qualifying for life insurance will be one adventure you will not get to experience. Skydiving and scuba diving are popular recreational activities, but they also carry measurable danger.

Poor Driving Record: A driving record that includes numerous speeding tickets and accidents in your recent past is often worse than your lifestyle choices. Every year, tens of thousands of people are killed while driving. While young people are the most affected, seniors are also tagged with being a dangerous risk if their driving record shows danger signs.

Occupation: If you work in a field that is considered dangerous, such as logging, fishing, roofing, electrical power, and even farmers and ranchers, you may be denied coverage. This is especially true if you are older and have other health issues.

If you know of one or more of these reasons might apply to your life insurance application, then you should address that before starting your search.