Red flags when applying for Life Insurance
In our line of work, aside from a home, life insurance is often the biggest asset that a loved one leaves behind for his or her family. So when thinking about applying for life insurance, you should be aware of any red flags in your personal and medical history that might get you turned down. According to this article, getting turned down by one carrier can mean you have a hard time finding coverage elsewhere.
Obviously if you have any serious of life-threatening conditions such as diabetes, AIDS/HIV, cancer, or heart disease you may be denied coverage, charged higher premiums, or be delayed coverage until your situation improves.
Other red flags include:
1. Obesity – particularly if you have other underlying health conditions such as high blood pressure or diabetes.
2. Uncontrolled blood pressure – but if your high blood pressure is controlled by medication, most companies will cover you.
3. Dangerous or exotic travel – this may result in a delay in coverage until you return.
4. Alcohol use – 3 or 4 drinks per day may increase your premiums. Any more than that, and you could be denied coverage.
5. Drug Use – illegal drugs will likely get you denied coverage. Marijuana use will be treated like smokers, who pay twice the premiums of non-smokers.
6. Dangerous recreational activities – although some insurers offer a high-risk policy that will cover activities such as skydiving.
7. Dangerous occupations – such as miners or pilots, may need to seek specialized carries or workplace group coverage.
8. A record of careless driving or DUI (driving under the influence).
If you have any of the above factors, and you can’t make a change to your lifestyle, then you may want to seek out a simplified issue policy which has a shortened questionnaire and no medical exam. These policies are more expensive and have lower maximum coverage, so you may need to get a number of policies in order to obtain the level of coverage that you want.
And if you are thinking of lying on the insurance application, think twice. In a recent decision, an Ontario Court ruled that TD Canada Trust could deny a $97,500 claim on the basis that the claimant’s late partner lied about seeing a doctor for various health issues, even though his death was unrelated to those issues.
Thanks for reading!