Life Insurance is already considered a necessity nowadays. But if you think everybody can just avail of it, you just might get surprised if you get declined. Before you file any complaints, there are actually various reasons why you fail in inquiring a life insurance.
Axis Capital, with a group of insurance and reinsurance companies in Bermuda, Singapore, Australia, United Kingdom and the United States, has rounded up some of the main reasons why most insurance companies do not permit you to have a life insurance:
1. Overweight or obesity
Insurance companies are strict when it comes to health complication especially cardiovascular-related ones since there is a higher risk involved. Your weight to height ratio is a strong indication of your overall health and fitness level. We all know that most obese have heart and lung issues.
Although there are some insurance companies do not specifically decline overweight clients, the premium cost may be higher than the usual coverage. If obesity also comes with other complications, it is highly likely that it can get declined.
2. Income Limitation
Life insurance can be expensive and insurance companies also consider the capacity of the individual to pay his coverage. In other companies, it is a method of cost containment. Restriction and certain income limit are set since low income levels can result to issuing of large number of small policies that produce reduce premium flows. Another reason that lower income can impede your approval is that the insurance companies have to justify the policy.
According to policy review, this isn't about casual drinking, but more about a positive alcohol marker indicated when liver functions are high. The combination of damage to health that occurs from alcoholism, as well as the potential for engaging in life-threatening activity is enough for many life insurance companies to issue a denial. It is best to postpone your life insurance application until you cease drinking.
4. Hazardous Occupation
Some occupations carry a higher degree of danger than others. This can make life insurance companies reluctant to approve policies if you are working in an occupation that is considered particularly hazardous. In Jakarta, Indonesia, construction workers find it hard to get insurance even when it is company-availed.
5. Drug Use
Though marijuana is slowly gaining acceptance as a medicine, most life insurance recognize the abuse of this drug even after it has been legalized. Confirmed use of drugs is an automatic decline when you apply for a life insurance.