Declined Life Insurance Coverage California CA
Reader’s Question:
What reasons could there be for a life insurance company here in California to decline coverage?
Byron
Berkeley, CA
There are a number of reasons why you might be declined for life insurance coverage there in California. All of it would most certainly involved the amount of risk you represent towards a life insurance company’s business. Listed below would be some of the general reasons why someone might find themselves unable to obtain life insurance:
” Prior medical history – an individual may have some immediate or recurring form of illness (history of cancer relapse, for example) that may not be within the experience, policy or interest to approve coverage. Terminal illnesses would definitely fall under this category.
” Age – it would be rare to find a provider who would not be highly reluctant to provide coverage to someone who is already 80 to 90 years old. Life insurance would not be practical or cost-effective for both parties at this point.
” Job or lifestyle – if your job or your lifestyle exposes you to extremely hazardous conditions or situations, you may get declined life insurance coverage by most providers.
” History of fraud – very much self-explanatory.
In these cases you would still have options even if they may be very limited. You could look for a life insurance agent who is very experienced in handling high-risk cases, and would know where to look for someone who will grant you coverage, or you may opt to go with a guaranteed acceptance policy which would not ask too many questions but will be more expensive.
Tags: Life insurance coverage, life insurance advise, life insurance application, life insurance
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