If you need life insurance, be aware that there are hobbies, professions, and circumstances that will hinder your chance for life insurance approval even if you’re healthy. An insurance company examines not only your health but also your personal history to determine if you’re insurable or an insurance risk:
Hobbies– Cliff Diving, Surfing (Big Wave), heli-skiing (being dropped from a helicopter to ski), Base jumping and free-running (involves jumping from rooftop to rooftop), parachuting, and in some instances being a pilot of a small aircraft.
Professions– Include being active military (possible deployment), working and living overseas, or traveling 75% of the year internationally for your job. Other high-risk labor professions such as oil production, crop spraying, and some demolition professions such as working with explosives warrant a decline. There are other professions that are considered high risk and may cause insurability.
Financial Reasons– Applying for more insurance than is justifiable, filing for Chapter 7 bankruptcy, poor credit, or have quit making payments to creditors can be a risk factor.
Unhealthy Addictions- Current addiction to drugs and alcohol generally is an instant decline. If you are drug and alcohol-free for three years or more or have gone through chemical dependency or alcohol treatment, you may now be insurable. However, if you have had a DUI in the last ten years, you may be declined. Having multiple DUIs is a guaranteed decline at most insurance companies.
Criminal Record– Being declined depends on a few factors such as how long ago the conviction was and what the occurrence was. If you’ve had multiple felonies, you may be declined. One offense is not necessarily grounds for a decline and how long ago you were on probation with no additional criminal occurrence will be considered.
If you have any questions or concerns about life insurance approval due to any of these situations, please visit with me. There are many insurance companies to choose from, and not all will decline an application based on this article’s information. During the application process, being honest when answering the questions is the first step. If you do receive a decline, I may be able to assist you in applying to another company that insures people with these types of situations.
As a retirement income specialist and 38-year veteran of the financial services industry, August H. Velten understands what his clients need in order to enjoy a comfortable retirement. Augie is a former instructor for the Life Underwriter Training Council and once occupied the legislative seat for the Maine Association of Life Insurers. At August H Velten & Associates, we know that it is your retirement, and you should have control over it. We offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!