5 Reasons Why You May Be Denied Life Insurance

3. You engage in risky hobbies.

Some people knit for a hobby while others go skydiving. Insurance companies view some hobbies as dangerous and, therefore, may be considered high risk.

Some of these activities include:

Skydiving
Racing (cars, boats, motorcycles)
Rock climbing
Hang gliding
Flying (recreational pilot)
Scuba diving

Every situation is different. And carriers will look at them on a case-by-case basis, but if you engage in any of these hobbies, they may affect your pocketbook or even your eligibility for coverage.

4. There’s a financial reason.

There are some income requirements when applying for life insurance. Different insurance companies have different limitations, but you can’t expect to be able to take out a $1,000,000 life insurance policy if you make $25,000 per year.

You can expect to get coverage of 10-30 times your annual income, depending on your age. If you don’t work and depend on your spouse, you can typically get the same coverage as your spouse. But, if you have no income and no justification for life insurance, you will most likely be declined.

» Learn more: How Much Life Insurance Can I Get?

5. You have a DWI/DUI history.

If you’ve had more than three DUIs in the last 10 years, you will be denied coverage. Some insurance companies will decline your application for having one or two DUIs over the last 10 years, while other companies will work with you on coverage.

» Learn more: What Are the Risk Factors that Affect Buying Life Insurance?

Every life insurance company has different practices when it comes to taking on risk. Some are more lenient with conditions, while others are strict.

If you get declined from one company, it doesn’t mean it’s the end of the road for you. There may still be options for coverage with another company.

Shopping around for life insurance is the best way to find the most affordable coverage. But you don’t need to do it yourself.

Work with an experienced broker that has access to high risk underwriters and  multiple carriers, increasing your chances for approval and the best prices.

At Quotacy, we do just that. We’ll shop your case for you. We work with several insurance companies which increases the odds of finding you a great product at a fair price.

Don’t let your fear of being declined prevent you from applying for life insurance.

» Compare: Term life insurance quotes