While getting denied life insurance is a little uncommon, it happens more often than you might think. Nobody likes getting denied, especially when it comes to losing out on potential financial protection. Still, it tends to happen for the following reasons.
Reason One: Diabetes
High blood glucose levels, surprisingly, can be a life insurance disqualifier. High levels usually indicate a diabetic future—which can make a policyholder risky to ensure. While some companies might be lenient with pre-diabetes policy shoppers, others may deny coverage at the door. Additionally, if you have diabetes that is well-controlled, then you might be able to still qualify for coverage. However, un-controlled diabetes is a much bigger issue.
Reason Two: Obesity
While not all life insurance companies view obesity the same, some consider it to be a policy disqualifier. Most providers refer to a build chart, which is a requirement chart based upon your height-to-weight ratio. If your weight doesn’t meet this chart’s requirements, you may find it difficult to get adequate coverage.
Reason Three: Age
While life insurance becomes more important as you age, it can become harder to obtain if you’re older. Age begets health issues, and the risk of poor health may turn some providers away. In some cases, however, a provider may offer coverage to older shoppers. Still, the available policies might also be lower, as well.
Reason Four: A Dangerous Occupation
Much like a pre-existing health risk, the possibility of poor health in the future may result in coverage denial. If you work a risky job, you might fall into this at-risk category—making it harder to find life insurance coverage.
Reason Five: Previous Denials
If you’ve previously had a life insurance policy denial, your risk of future denial increases. Life insurance providers answer to the Medical Information Bureau—which reports to future companies about your insurance application history. Future providers may receive notification of this.
Fortunately, it’s still possible to find a good life insurance plan. Speak with your provider about potential risks when shopping, and be proactive about finding a provider which may cater to your situation. In time, you’ll find a policy that’s right for you.