1. Certain health conditions: If you are suffering from cancer or have had a heart attack within the past six months, you might be declined for a traditional life insurance policy. Most of the time, people who get declined for a life insurance policy, apply for the wrong policy or with the wrong company.
Just like not every home insurance company provides with earthquake insurance, not all life insurance companies deal with high-risk life insurance. Hence, if you have a health condition such as high blood sugar, it’s recommended that you work with a life insurance agent first to determine the best possible course of action so that the things become easier for you.
2. High risk activities: If you are into scuba diving, you can get life insurance. But it all depends upon the type of diving you are into (open water vs cave diving), diving frequency, location of diving and the depths you scale.
Some insurance companies might deny you life insurance if you travel internationally quite often or live abroad for many months of the year. If you are an active duty military personnel, you might get trouble having life insurance for your own.
3. Bankruptcy: If you have recently filed for either Chapter 7 or Chapter 13 bankruptcy, then you would get declined for life insurance. The proceedings have to be discharged for at least 12 months until you can apply for coverage. However, sometimes, even if you are in the midst of a bankruptcy proceeding, you might be able to qualify for coverage. If you want to be that lucky, make sure you are making regular payments towards your debt accounts.
4. Certain financial reasons: Financial justification is a necessity to get approved for life insurance. For instance, if you are earning $50,000 a year, you won’t get qualified for a life insurance policy worth $2,500,000. As an earning individual, and depending upon your age, you only get coverage of anywhere between 10-30 times of your annual income. However, even if you don’t have any income, but your spouse does, you can usually get as much coverage as your spouse.
5. Criminal record: Even if you have criminal record, you can qualify for life insurance coverage, however, based on some factors. The insurance carrier will try to see like how long it has been since you were convicted, what kind of a conviction it was, if you had multiple felonies, misdemeanors, etc,. If you had multiple felonies, you are likely to get declined.
6. DUI: If you have had more than three DUIs (driving under the influence) in the last 10 years, every insurance company in the country is probably going to decline your coverage. However, if the number is less than that, you can probably get something with some insurance companies. However, if you are still declined, perhaps you’ve filed with the wrong insurance company.
Again, if you are an alcohol or drug addict, you will get denied for life insurance. Nevertheless, if you have remained drug free for three years or more than that, or you’ve stopped alcohol for more than two years, you should have some luck getting a policy.
If you find yourself in any of the above situations, it’s wise to start working with an insurance professional to find a way out for your condition.