“If a child, a spouse, a life partner or a parent depends on you and your income, you need life insurance” -Suze Orman
You might have considered getting yourself insured, but were rather surprised that your application for a policy was rejected. You may have thought it odd considering that the focal point of getting insured was to make sure your family is financially secure in the event that you die. Unfortunately, there are a myriad of factors to consider if one applies for a life insurance. This is a universal truth whether you apply for insurance in the Philippines or elsewhere.
Here are some of the top reasons why you might have been disqualified for life insurance:
1.) Obesity or Overweight
Obesity or being overweight is associated with many health complications—particularly cardiovascular diseases which are a red flag a life insurance company cannot overlook. Furthermore, your weight-to-height ratio is a great indicator if your overall health, fitness, and well-being. Although obesity and being overweight is not always the cause for a rejection in a life insurance rejection, higher premiums may ensue—especially if it is coupled with other health problems.
If you have a proclivity for imbibing alcoholic drinks, you are not likely to be declined for a life insurance application. However, there is a difference between casual weekend drinking and alcoholism. Life insurance companies tend to reject applications from the latter as it can lead to serious liver complications. Apart from that, alcoholism is widely linked to a potential for engaging in life-threatening activities which would make life insurance companies likely to reject individuals like this.
3.) Income Limitations
While this is not true for all life insurance companies, some companies are more selective in choosing their beneficiaries and would not be as receptive to accepting applicants whose income are below a certain level. Insurance companies do not want to insure these people as it can invariably result to issuing more small policies which ould produce reduced premium flows. In other words, a method of cost containment.
4.) Hazardous Occupations
There are some professions or occupations that would put an individual in a precarious situation on a regular basis. In a sense, these are the jobs that carry a higher degree of danger than other jobs. If you are an individual with a rather hazardous job, you will not be rejected for an application outright, but life insurance companies would be hesitant and averse to accepting your application.
5.) Hazardoes Extra-Curricular Activities
Apart from what you do for a living, what you do during your free time might play a pivotal factor on why your application for life insurance will be denied. Extracurricular activities that involve putting yourself at risk for most of the time carries with it the higher risk of premature death. This is a fact most life insurance companies would not easily ignore, and if you do engage in some of them yourself, you may find that getting yourself insured would be a lot harder.