Factors affecting life insurance coverage
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Most people who are in the market for life insurance understand
that a family history of medical conditions, smoking, heart problems,
etc. will lower your chance of receiving the best possible coverage
for the best possible rate. But there are other factors that may
increase your premium or lower your coverage.
An article posted by spectruminsurancegroup.com titled, “Are
You Hard to Insure?” focuses on the minor details that you
may have expected to affect your life insurance policy.
“One of the main reasons why insurance companies reject people
from buying
life insurance is when they realize that you are very likely
to use it.”
Sometimes you have no control over a natural disaster, such as a
flood, but there are certain steps you can take to prevent or at
least minimize the destruction of other things you once thought
you had no control over.
“Exposure to natural calamities like earthquakes can't be
helped. However, owning an unfenced swimming pool, with a diving
board increases your chances of being refused life insurance coverage
or of having to pay more for liability claims.”
The area where you live and the condition of your property or apartment
can also contribute to the denial of coverage.
“Unsafe Conditions: High crime areas or buildings with high
risk of fire are considered unsafe. Any indication of dilapidation
such as cracked steps or a leaky roof will be taken into consideration
when life insurance agents are deciding on renewing
your insurance policy.”
A couple other factors you would probably never expect an insurer
to consider before offering you insurance, are if you have ferocious
pets that could maim, and if you own a wood-burning stove. These
things are unlikely to pose you death, but insurers consider even
the most remote deadly scenarios before granting life insurance.
“A number of claims filed within a couple of years could lead
insurers to believe that you are either not taking maintaining
your home and possessions, or engaging in life insurance fraud.”
What do you do and where do you go if no one grants you life insurance?
“People who live in an area prone to floods could be required
to buy life insurance
separately. If your problem isn't that specific, but still have
nowhere else to get one you still have a last resort as there are
31 states that offer Fair Access to Insurance Requirements plans.
However, FAIR plan policies are usually highly priced and less comprehensive
than standard policies. Check to see if your state office of insurance
has this provision.”
Before you apply
for life insurance, consider all the options that could affect
your claim. They may not be obvious, but they could be the deciding
factor in whether you are approved or not.
