Friday, August 16, 2013

Why Life Insurance Coverage Companies Deny People Insurance

Life insurance provides protection against an early death. Therefore, life insurance companies regularly insure people who are statistically more likely to live a longer life and not die during the policy term. High-risk people are often denied coverage for this reason.

Personal Medical History

Life insurance companies tend to deny coverage to patients with history of cancer, diabetes, heart conditions, or other conditions known to shorten life span. If you have high blood pressure, then coverage can be denied.

Family Medical History

Insurance companies' underwriting teams also consider the family history of their applicants. If your parents or siblings have been diagnosed with, or perished due to cardiovascular disease or cancer, your chances of being approved are lesser than applicants with no such medical histories in their families.

Drug and Alcohol Use

If you have used illegal drugs (or prescription drugs used to treat severe conditions), or consume alcohol regularly in moderate amounts, you may also be denied coverage. The chances of overdosing as well as accidents resulting from the usage of these drugs deem you as unsuitable for life insurance policies by many carriers.


Generally, cigarette smokers will be covered but at a significantly, if not exorbitantly higher cost than an applicant with the same medical and familial history who doesn't smoke. The nicotine in cigarettes must be out of your system for a minimum of 12-60 months, depending on the carrier, for your rates to be lowered to the average rate.

Hazardous Lifestyle

You may also be denied life insurance coverage if you indicate that you participate in hazardous activities that often result in death, like sky diving, bungee jumping, water-skiing, scuba diving, as well as other activities that vary, depending on the carrier's criteria.

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