3. You engage in risky hobbies.
Some knit for a hobby while others go skydiving. The insurance companies’ view certain hobbies as dangerous and can therefore be considered high risk.
Some of these activities include:
- Racing (cars, boats, motorcycles)
- Mountain climbing
- Fly (recreational pilot)
Every situation is different. And carriers will look at them on a case-by-case basis, but if you engage in any of these hobbies, they could affect your wallet or even your eligibility for coverage.
4. There is an economic reason.
There are certain income requirements when applying for life insurance. Different insurance companies have different restrictions, but you can̵7;t expect to be able to sign one $1,000,000 life insurance if you earn $25,000 per year.
You can expect to receive coverage of 10-30 times your annual income, depending on your age. If you are not working and dependent on your spouse, you can usually get the same coverage as your spouse. However, if you have no income and no justification for life insurance, you will most likely be turned down.
” Read more: How much life insurance can I get?
5. You have a DWI/DUI history.
If you have had more than three DUIs in the past 10 years, you will be denied coverage. Some insurance companies will deny your application for having one or two DUIs for the past 10 years, while other companies will work with you on coverage.
” Read more: What are the risk factors that affect buying life insurance?
Each life insurance company has different practices when it comes to taking risk. Some are more lenient with the terms, while others are strict.
If you are rejected from a company, it does not mean that it is the end of the road for you. There may still be options for coverage with another company.
Looking for life insurance is the best way to find the most affordable coverage. But you don’t have to do it yourself.
Work with an experienced broker who has access to high risk insurers and multiple carriers, increasing your chances of approval and the best rates.
At Quotacy, we do just that. We shop for your case for you. We cooperate with several insurance companies, which increases the chances of finding a good product at a reasonable price.
Don’t let your fear of rejection stop you from applying for life insurance.
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