Each life insurance company has its own underwriting system. Just because one life insurance company denied you coverage doesn't mean that you will never be able to get life insurance. While it is true that certain severe conditions may prevent you from getting life insurance from any company, there are other grayer areas for which the various the underwriting criteria that differ from company to company may be used to your advantage. This means you could get coverage simply by shopping around for life insurance.
Factors that Underwriters look at when assessing your risk of death
There are several factors that are used to calculate your life insurance premiums. These are common to all life insurance companies.
- A severe health condition. Factors may include a serious disease, being overweight, smoking, excessive drinking, taking mind-altering drugs.
- Family health history. If your family health history shows that a parent has died from a heart attack, or succumbed to cancer, these are negative
- Occupations that require you to be subject to hazardous or life-threatening situations.
- Engaging in adventurous hobbies or extreme sports such as bungee jumping, hang-gliding, race car driving, sky-diving, etc.
- Life insurance companies will also look at your driving record to check for traffic violations and DIUs as well as your credit card report. This gives underwriters an indication of how you are at managing other aspects of your life.
The "best preferred" rates are usually awarded to individuals who are in mint health condition, have the advantage of age, and have no family history of poor health. But most applicants fall in the "preferred" premium category. Underwriters classify such people as being a below average health risk. "Standard" classification is for those whose health profiles show they are riskier than average. Such policies are usually offered at a higher price.
How to decrease your chances of being denied coverage
Health concerns such as AIDS, cancer, asthma, major heart disease, diabetes and other chronic conditions, can either push your premium rates exorbitantly high or push you right off the market. This is also true if you are engaged in extreme sports or jobs that are highly hazardous.
However, despite such conditions, you can increase your chances of getting coverage. For instance, if you have had cancer and you are now in remission, and your condition requires no further treatment or medication, you will need to explain this clearly on the application form. If you can provide written corroboration from your doctor or any medical documentation that would support your present health condition, it could help underwriters assess your situation more accurately. Instead of being denied coverage completely, you could at least qualify for standard rates.
Preparing well in advance for your medical exam could help you to fall into a cheaper premium rating. Follow a heart healthy diet, lose a few pounds if you are overweight, and get a good night's sleep the night before the exam. This will increase your chances of getting the best premium rates for yourself.
There are life insurance companies that "favor" certain conditions and may look more closely at each individual situation and assess premiums accordingly. For instance, if you are a smoker, such niche life insurance companies will delve more deeply into how many cigarettes you smoke daily and compare that with your current health condition. Some even offer incentives to smokers who have quit smoking for more than a year. The same applies to non-insulin diabetic conditions, people with heart conditions, individuals who are overweight. Different underwriting processes will use different criteria to assess these conditions and therefore, you may find yourself with a very affordable premium rating by just comparing different life insurance quotes from different carriers.
Online life insurance quote providers will give you instant term life insurance quotes from top-rated life insurance companies. You can compare life insurance rates, products and the financial rating of each life insurance company. Choose a cheap life insurance policy from a life insurance company that has an A or A rating. A high rating will ensure that your life insurance has an excellent track record for paying off claims.
What if you are uninsurable through traditional life insurance policies?
In spite of all of the above, if you still cannot get a traditional life insurance policy, you can apply for no-medical life insurance. A no-medical life insurance policy, as the name implies, does not require you to go through a medical exam. You will be asked a few questions related to your health and lifestyle. If you are under the stipulated age, almost anyone can qualify for either permanent or term no-medical life, and once approved, coverage can begin the same day!
About AccuQuote:
AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.
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