10 Reasons You Could Be Denied For Life Insurance

Past Denials

Insurance companies are closer linked than one might think. If one company denies an application for health or life insurance, they cannot just go to another company and expect a completely unbiased start. Insurance companies utilize the Medical Information Bureau, which holds records of life insurance applications (among other things). This is to prevent those individuals who lie on life insurance applications from trying to pull off the same scam on other companies after being denied. It should be said that being denied for a life insurance policy by one company does not mean the applicant will never be approved by another company. This is especially true if the reason they were declined in the past is no longer an issue, such as a cured disease or rehabilitated drug use.

HIV/AIDS

HIV and AIDS were once a considerably larger issue for those seeking to obtain a life insurance policy. Although the issue has now been reduced, it is still considered a potential liability. Treatment methods for HIV/AIDS have greatly improved over the years. However, some insurance companies might still be reluctant to provide coverage, at least with average rates. For these types of long-term conditions, an applicant should shop around and research companies who are more willing to provide coverage for people with HIV/AIDS and similar conditions.