There are many reasons why you may be declined for life insurance. Each and every insurer has different criteria to assess the risk in providing life insurance to an individual. Factors such as serious health conditions, severe mental health conditions or a disability are all considered to be high risk and are therefore often reasons for being declined.
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High risk basically means that you are more likely to claim from the insurance provider sooner rather than later. The insurer is, therefore, less likely to make money from the premiums that you pay and the risk of approving the life insurance will need to be carried by other policyholders, increasing the rate that the insurer needs to charge.
The 13 most common conditions that could result in a life insurance policy being denied or declined include:
1. High Blood Pressure
High blood pressure or hypertension is a risk factor for many different health conditions. An insurer is more likely to provide life cover if you are taking steps to lower your blood pressure and keep it under control.
2. High Cholesterol
A cholesterol or HDL (High-Density Lipoprotein) ratio of below 4.5 may be a reason for a denial. However, it could only mean an increased insurance rate if you can show that you are taking measures to improve your cholesterol ratio. You will need to lower the LDL and boost your level of HDL cholesterol to more normal levels.
3. High Blood Sugar
High blood sugar is a marker for diabetes and other health conditions that are considered to be high-risk factors by many insurers. Some insurers will provide cover if you are diabetic and the disease is being treated and managed while other insurers may deny an application outright. It is best to find an insurer that is more lenient regarding blood sugar levels before applying.
Many people are shocked that life insurers will decline an application on grounds of obesity. However, this is normally only in the case of extreme obesity as it can result in high blood pressure, high blood sugar and a multitude of other high-risk health conditions.
It is important to select an insurance carrier with a lenient policy towards build requirements which is your height to weight ratio.
5. Alcohol Consumption
Elevated liver function, cirrhosis of the liver or a positive alcohol marker are all reasons for denial of a life insurance policy. It is recommended to reduce or quit drinking alcohol entirely for a few months before applying for insurance. Alternatively, apply for no exam life insurance where you will be required to complete a medical questionnaire but not undergo a physical exam.
However, if you lie on the questionnaire regarding alcohol consumption, a claim could be turned down if you die from a liver-related condition.
6. Dangerous Or Hazardous Occupation
A dangerous occupation is risky business and therefore more likely to result in a denial from an insurance carrier. It is recommended to look for insurance policies that are designed for high-risk occupations or individuals. This can also apply to sports, hobbies or other activities that may be considered dangerous or unusual risk.
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.
7. Driving Record
Motor vehicle accidents are one of the leading causes of death and an insurer may access your driving record to establish the risk. So if you have multiple speeding fines or have been arrested or charged with a DUI more than once, it could result in a denial.
While young people are the most affected, seniors are also tagged with being a dangerous risk if their driving record shows danger signs. It is best to wait until your DMV record is clear before making an application.
8. Kidney Disease
This is normally revealed by blood or protein in the urine during a physical exam. It is best to opt for life insurance that does not require a physical exam if you are aware that you suffer from kidney disease or a related condition.
9. Cardiovascular Or Heart Disease
Cardiovascular disease is another leading cause of death and therefore considered to be high risk by life insurers. If it can be shown that the heart or other related condition is being treated and under control, a life insurance application may be approved. Alternatively, opt for no exam life policy.
10. Recreational Or Illegal Drug Use
Most insurance carriers will deny an application if unexplained drug markers are detected in the blood or urine analysis. It is best to refrain from drug use before a physical exam or select a carrier that does not require an examination. 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.
11. 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.
12. Mental Health
Some insurance providers may decline applications on the basis of severe mental health conditions such as schizophrenia. They may also decline for conditions such as Alzheimer’s Disease which results in progressive decline. If it can be proven that the condition is manageable and being treated, approval may be granted.
13. Lack 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.
If you have had an application for life insurance denied or declined before, it can make it more difficult to receive approval in the future. This does not, however, mean that it is not possible to successfully apply for life insurance in the future.
How Not To Get Rejected by Insurance Providers?
Simply by making some lifestyle changes and ensuring that high-risk health conditions are being managed and treated, can result in an approval. Also looking for insurance carriers who have a more soft approach to risk assessment could mean approval even if you have formerly received a rejection.
It may also be a simple matter of paying a higher rate for the life insurance than young, healthy policyholders.
What is the best way?
The best approach is, however, to opt for life insurance that does not require a physical examination if you are aware of any health conditions that could result in a denial. No exam insurance is more expensive than conventional policies as the risk carried by the insurer is much higher. Click here to get free quotes.
In order to be approved, a medical questionnaire will need to be completed as part of the application process. This questionnaire will determine your risk assessment and therefore the rate you are likely to pay. If you lie on the questionnaire or in the application document, the policy can be nullified or cover can be turned down in the event that you died from causes related to the falsified information.