11 Ways Your Life Insurance Application Can Be Negatively Affected

When you’ve researched the life insurance market, worked out the best deal you want and sent off a life insurance application you can sometimes receive a quotation that is more expensive than you were expecting. So, having done all of the research, what exactly was the cause of unexpectedly expensive premiums? Your insurance company will consider a wide range of factors so it’s worth getting to know about all of them.

Using E-Cigarettes

E-cigarettes have become very popular recently as a way of helping you to quit smoking. Advertisements claim they are healthier than cigarettes because they contain nicotine in vapour and not smoke. From the insurers perspective though, e-cigarette users are still classified as smokers. This is because we do not yet understand the risks attendant to using e-cigarettes. Life insurers face a real dilemma, they can’t quantify the risk so e-cigarette users face the same high premiums as traditional smokers.

Having a Pilot License

In the past, aviation was an exclusion from life insurance but it is not always today. Pilots have the same insurance as ordinary folk. With safety improvements on modern planes, flying is now considerably safer. Commercial pilots are now able to get life insurance easily however private pilots face higher premiums, depending on their age or experience. Despite this a middle aged pilot with a high number of flying hours can still find reasonable premiums.

Visiting Travel Advisory List Countries

It could be that your insurance will not protect you if you travel outside of your country. You are responsible for understanding exactly what your policy offers, i.e. those circumstances when your insurer will have to pay.
Life Insurance ApplicationFor some countries the government issues a Travel Advisory. In the case of these countries, travel insurance companies may not honour claims made on the policy resulting from injury or illness. Either way, it is important to get an itemised invoice from the medical provider before you leave, it is much more difficult once you have returned home. It is better to get separate travel insurance if you are planning to travel.

Drunk Driving

A DUI on your record can adversely affect your premiums as it will stop you getting preferential or super preferential status from your insurer. Even minor driving offenses can affect your premium.

Your Family History

Most illnesses that are terminal today can have a hereditary element so your insurers will want to examine your family health record before providing a quotation. It will usually be your close family, parents, grandparents, and siblings. Where there is evidence of hereditary illness such as heart disease you should expect your premiums to increase.

Previous Refusals

Insurers take underwriting very seriously. So, if a insurance company has refused your application in the past you need to find out what led to the refusal and sort the problem out. If you submit a similar application to another company you will almost certainly get the same result. Every application you make will also contain details of previous refusals so the fewer you have the better.

Should you experience your first decline simply find out from the insurer why. Insurers will letters to your doctor detailing why the policy was declined. Then you can confirm with your doctor if the problem is recorded in error or you have a health issue that needs addressing. Where the health problem can’t be fixed you always have the opportunity of taking a non-medical policy.

Low Salary

Life Insurance Application DeniedMost companies offer insurance where the pay-out is directly linked to the policy holder’s income. Some also place extra restrictions on pay out levels as a way of keeping their profit margins high. In most cases, a household with less than $30,000 will be uninsurable. This is why you need to find out the reasons behind any rejection for insurance. When the problem is linked to income, a good broker can provide you with detailed advice.

Underwriter Problems

Sometimes, during the underwriting stage of your application, errors can sometimes creep in. Details in your medical such as heart rate may be unexpectedly high s you may have just finished exercising when you had your medical. An unusually high heart rate will cause a problem. So, take medical exams in the morning to avoid any problems and think about asking for a second examination if your application is declined.

Not a Resident

You must be resident in the country you say your are.

Failing an HIV Test

If you don’t pass the HIV test you will get limited life cover (such as accidental death only) and not complete life insurance. Note that you can still join a medical aid if you have HIV.

Lack of Broker Following Up Life Insurance Application

Insurance applications are always time bound. They expire after a certain period. If your broker does not follow up within the period your application will automatically expire. A good broker will help but you need to be aware of the expiry dates and make sure you follow up with your Doctor and broker to ensure the application is nor declined because it goes out of date.


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All info was correct at time of publishing