Life insurance can help your family financially cope if you pass away, which is why many individuals apply for policies. There are many factors--from your health to your age to your habits--that can affect whether an insurance company will offer you a policy. Medical reasons that can cause you to be declined for life insurance include terminal illness and preexisting conditions, among others.
Life Insurance Companies Determine Risk with Medical Exams
Considerations
When life insurance companies consider whether to decline a policy, they evaluate the chances of the applicant's passing away before the policy matures. If a person lives long enough and pays his premium over the course of the term, the company may make money. Otherwise, the company may lose money. As part of determining your risk factor, companies may require you to complete applications or tests that cover your mental and emotional health as well as your physical health.
Medical Testing
The medical test for life insurance depends on your age and your answers to the questionnaire provided in the application. In most cases, the company assigns a paramedical professional to come to your home or office to complete the examination. The professional probably will take blood and urine samples, get your medical history and perform a physical examine to measure your pulse, height, weight and blood pressure. The company may require additional testing, such as an electrocardiogram or a treadmill test.
Medical Reasons
There are two primary categories life insurance companies may use to decline insurance: terminal illness and preexisting conditions. The National Cancer Institute defines a terminal illness as any illness that has no cure and leads to death. The illnesses a life insurance company considers terminal vary but can include being HIV positive or having some types of cancer.
Preexisting conditions are those the applicant has before seeking the policy. These can include mental illnesses as well as physical ones. In some cases, the presence of too much alcohol or nicotine also can result in a denial.
Misconceptions
Being denied coverage by one life insurance company doesn't mean you won't be able to get a policy. You can talk with the company and request further testing to confirm you aren't a medical risk. In some cases, your agent can help with this process. You also can look for life insurance companies that specialize in high-risk cases. The premiums usually cost more, but you can get the coverage you need.
Time Frame
Insurance companies report medical testing information to a central database maintained by MIB Group, a company whose stated mission is to protect insurers, policyholders and applicants from attempts to conceal or omit relevant information. Information stays on your record for seven years, and companies compare new tests with the information on record. You can request a copy of your MIB report and dispute any incorrect information with MIB Group.
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