Can I Be Denied Life Insurance Based on My Health History?
Insurance can be expensive, so many opt to go without it. But for those who have families or people who depend on them financially, they may want the peace of mind that comes with life insurance.
Life insurance protects your family when you pass away. Instead of leaving them with debt and bills, they will receive money that provides them with financial stability.
The thing with life insurance, though, is that it is not a guarantee. Not everyone who applies for life insurance gets it. There are certain criteria that you must meet, almost like applying for a credit card or a loan.
Many people are denied for various reasons. Many of these reasons have to do with health. This is because insurance policies are based on risk.
If you get a 10-year or 20-year policy and there is a high risk that you may die during that time, you will likely have to pay much higher premiums. You could even be denied coverage altogether.
Generally, your health history affects eligibility for life insurance. When you apply, insurers review medical records and prescription history. They will often require blood tests or a medical exam as well. Conditions such as HIV/AIDS, liver disease, heart disease, cancer, diabetes, stroke, severe obesity, and certain mental health conditions can increase risk. The more recent, severe, or poorly controlled the condition, the more likely it is to affect approval.
So, while life insurance companies can deny coverage based on your health history, keep in mind that a denial is not automatic. Even if an insurer is concerned about your health, they may still approve you, but at a higher premium. They may offer a modified policy with lower coverage.
An insurance company can deny you for non-medical reasons as well. You may face denial for engaging in risky behaviors like skydiving, having a dangerous job like roofing, being a smoker, or having a criminal history.
Keep in mind that a denial usually reflects one insurer’s guidelines, not the entire market. This means there are still options available. You can apply with another insurer, since underwriting rules vary widely.
Employer-sponsored group life insurance is another option, often requiring no medical exam, though coverage amounts may be limited. Alternative policies like simplified issue or guaranteed issue life insurance can provide coverage without medical exams. These options are easier to qualify for but usually offer lower coverage limits, higher costs, and, in some cases, waiting periods before full benefits are paid.
Contact Us Today
Life insurance is a good option to guarantee your family’s financial stability in the event of your death, but approval is not guaranteed. Your health can be a huge factor.
Hartman Insurance Agency, Inc. can help those interested in purchasing life insurance in Michigan. Let us find you the right policy for your needs. To schedule a consultation, contact us via (734) 999-4190 or online here.