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Saturday, November 23, 2013

Can't Get Life Insurance? You Have Options

This is a guest post by Nancy Evans.

You probably know the importance of having insurance. This is why you have auto insurance, homeowners insurance and health insurance. And if you’re a renter, you may have a renter’s insurance policy. These policies are undoubtedly a priority. But they aren’t the only priorities when it comes to insurance.

Life insurance is just as important. You may skip coverage because you think it’s too expensive, or maybe you feel you’re too young to think about this type of insurance.

But you are never too young to prepare for the future, and if you’re the head of a household or have dependents, you need a policy more than any other group. The importance of this cannot be stressed enough.


Life insurance can replace your income after your death, taking a major burden off your family members. Secondly, the death benefit from a life insurance policy can pay off any remaining debts you have, such as credit cards, auto loans or a mortgage loan. Also, money from a life insurance policy can be used to pay future expenses, such as your child’s college tuition or perhaps your daughter’s wedding expenses. These reasons and more underscore the importance of speaking with a broker and getting a policy to protect your family.

But even if you recognize the importance of having a life insurance policy, the truth is: not everyone will qualify. There is an application process, during which the life insurance company will request information about your medical history and current health. The company may order medical records directly from your doctors.

Some people apply for a life policy thinking anyone can qualify. If you’re in relatively good health, getting an affordable policy shouldn’t be an issue. But if you have a pre-existing medical condition, the life insurance company may rate your policy – meaning you’ll pay more than a person in good health – or decline your application altogether.

Being denied life insurance may come as a huge surprise, especially if you don’t have a terminal or life-threatening medical condition. But with life insurance companies, it’s all about risk levels, and if you’re in a high risk group, some companies won’t accept you as a customer.

However, all hope isn’t lost. There are options, and just because one life insurance company turns down your application doesn’t mean another will. With that said, shopping around can help you find the right company. Additionally, you may have better results working with an agent who specializes in high risk life insurance. Based on your medical history, a broker can help you find a company willing to underwrite your policy. Your premium may be slightly higher than someone with a preferred plan, or you may have to downgrade coverage to keep your premium affordable - however, something is certainly better than nothing.

The same way you view auto insurance or homeowner’s insurance as mandatory, you should feel the same about life insurance. Evaluate your insurance needs and then work with a broker to ensure you get the coverage you and your family deserve.

This is dedicated content provided by Nancy Evans, site supporter.

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